*Chinese ADRs stabilize*
Chinese ADRs also stabilized; Alibaba rose 0.04% to $108.61, Pinduoduo gained 0.29% to $81.63, JD.com dropped 0.07% to $26.76, Baidu advanced 0.90% to $80.50, Li Auto climbed 5.67% to $11.93, NIO rose 1.18% to $3.43, XPeng surged 7.60% to $9.91, KE Holdings gained 0.84% to $18.06, Ctrip increased 1.79% to $40.30.
ADR prices closed higher than their corresponding Hong Kong closing prices; Tencent (00700) ADR was 0.39% above its Hong Kong counterpart, equivalent to HK$412.0; Xiaomi (01810) ADR was 0.11% higher, equivalent to HK$27.1; Meituan (03690) ADR was 0.76% higher, equivalent to HK$76.7; AIA (01299) ADR was 0.50% higher, equivalent to HK$73.1; HSBC (00005) ADR was 0.60% higher, equivalent to HK$145.6; HKEX (00388) ADR was 0.17% higher, equivalent to HK$373.0.
*SpaceX earnings boost Asian stocks; Chinese tech firms reportedly placed orders with NVIDIA,利好 to Hong Kong stocks*
U.S. stock earnings supported the broader market, especially SpaceX's after-hours results, with its AI business turning profitable, boosting the recently sluggish AI investment market. Asian stocks benefited and rose, with Japanese stocks up nearly 2% and South Korean stocks up nearly 4%. The Singapore HS50 index, reflecting expectations for Hong Kong stocks, currently stands at 24,049, up 182 points, with a 182-point premium over the current Hang Seng Index, suggesting the HSI is expected to open nearly 200 points higher.
Besides the potential positive impact of SpaceX's AI business on the Hong Kong market, Reuters cited sources reporting that Alibaba and Tencent, after receiving official "green lights," have placed orders with NVIDIA (US.NVDA), spending a total of $35 billion to purchase "RTX PRO 5500 workstation GPUs" as a cost-effective alternative for training AI models. More advanced GPUs, such as the previously rumored "H200," are restricted from export by the U.S., so Chinese firms can only use the "RTX PRO 5500" to enhance computing power.
The HSI is expected to perform positively today. Referring to the distribution of HSI bull and bear warrants, funds were redeployed into bull positions following yesterday's decline, with net bull positions increasing by 487 corresponding futures contracts. Conversely, although bear positions were mainly profit-taking, some funds still placed bets on near-the-money bear warrants, anticipating a deeper market pullback. The nearest new zone 24,300 to 24,399 recorded 616 corresponding futures contracts, expected to act as resistance for rebounds over the next two days. The HSI is expected to first test and stabilize around 24,000 to the 10-day MA near 24,100 today. (hc)