KGI Asia Commentary

HSI fell 348 points on Monday

The Hang Seng Index opened 64 points lower at 19,852 points. On Monday, the trend fluctuated and even turned upward. However, it fell 348 points or 1.7% to 19,568 point at market close; the China Enterprises Index fell 146 points or 2.15% to 6,649 point; The index fell 119 points, or 2.8%, to 4,105 point. The market turnover was HK$127.2 bn. China National Building Materials Group (3323) fell 8.5% to HK$6.34 after the announcement of its results. Although the performance of Meituan (3690) was better than expected, the stock price was still under pressure and fell 6.3% to HK$131.4.

First Citizens Bank Acquires Silicon Valley Bank

News about American banks continues to spread. Firstly, First Citizens Bank of the United States will acquire Silicon Valley Bank and will undertake all deposits and loans of Silicon Valley Bank. Previously, the FDIC estimated that the collapse of Silicon Valley Bank would affect its Losses from the Deposit Insurance Fund (DIF) were around $20 bn. In addition, there were reports that the U.S. authorities were also considering expanding emergency lending programs for banks, and in addition, the flow of deposits from regional banks to large banks had slowed down significantly. The news helped restore confidence in the market and eases investor risk aversion.

The Dow rose 194 points, or 0.6%, to 32,432; the Nasdaq fell 55 points, or 0.5%, to 11,769; the S&P 500 rose 6.5 points, or 0.16%, to 3,977

Baidu is launching an enterprise-level "ERNIE Bot"

Baidu Smart Cloud canceled the conference on cloud services and products related to "ERNIE Bot" held yesterday, but replaced it with a closed-door meeting for the first batch of invited companies. According to internal media reports, the new service provides customers with enterprise-level large language model services. Point out that in the future, third-party open source will be available to the user. According to the news, enterprise-level of "ERNIE Bot" service charging model will be charged at Rmb0.012 per 1000 tokens, and the payment is based on the total number of words input and output of the call.

Hong Kong Stock Connect had a net inflow of HK$4.26 bn on Monday, of which Tencent (700) had the largest net inflow of HK$1.49 bn; followed by Sinopec (386). China Construction Bank (939) recorded the largest net outflow of HK$240 mn, followed by Yankuang Energy (1171).