KGI Asia Commentary
Hang Seng Index rose 284 points on Wednesday
The Hang Seng Index recorded 16,624 Wednesday, up 284 points or 1.74%; the HSCEI rose 115 points or 2.1% to 5,603; the HSTECH rose 92 points or 2.6% to 3,640. The daily market turnover was HK$99.25bn. The National Press and Publication Administration stated that it will listen to opinions from all parties when formulating the regulation. In addition, the number of newly approved domestic online game licenses in December reached 105, including Tencent's "Counter-Strike: Future" and NetEase's " Lost light." Their stock prices rose 11.9% and 4.0% respectively throughout the day. NIO (9866) said orders for its flagship new car ET9 were much higher than expected, and its stock price rose 12.2%.
U.S. regional Fed survey shows labor market demand is slowing
Surveys released by the Federal Reserve Banks of various regions showed that labor market tensions in different regions were slowing down. Philadelphia's manufacturing employment forecast is at its lowest level since 2009, while the New York Fed's manufacturing employment forecast is the worst in 2017, and the tightness of the service industry labor market has continued to improve since 2022.
All three major U.S. stock indexes recorded gains. The DJIA rose 111 points, or 0.3%, to 37,656; the Nasdaq composite rose 24 points, or 0.2%, to 15,099; and the S&P 500 rose 6 points, or 0.1%, to close at 4,781.
Chinese mobile phone shipments continue to grow in November
According to data from the Ministry of Industry and Information Technology, Chinese mobile phone shipments continued to grow in November. Mobile phone shipments in China were 31.21mn units, a yoy increase of 34.3%. Compared with the annual growth rate of 19.7% in October, growth accelerated. Overall mobile phone shipments in the first 11 months of this year totaled 261mn units, a yoy increase of 7.1%. If 25mn mobile phones can be shipped in December, it will tie the 286mn units in 2022, but it is still far from the 329mn units in 2021. Looking forward to 2024, IDC expects smartphone market shipments to reach 287mn units, which may be flat yoy.
The net outflow of Hong Kong Stock Connect on Wednesday HK$1.24bn, with China Mobile (0941) having the largest net inflow of HK$780mn, followed by CSOP HS TECH (3033). China Construction Bank (0939) had the largest net outflow, reaching HK$270mn, followed by SMIC (0981).
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