Sunday, June 16

China Market Update: Meituan Crushes Analyst Estimates, Alibaba’s Must-Read Regulatory Filing, Week In Review


KraneShares Week in Review

  • Asian equities were blended today as Japan outshined on the BOJ’s dovish rate walking, and China’s markets remedied rather after gains recently.
  • It was a hectic week for profits, with better-than-expected Q4 reports from Tencent Music, Tongcheng Elong Travel, and PDD. Kuaishou, Xpeng, and Tencent reported combined outcomes.
  • January-February commercial production went beyond expectations, according to a main release Monday, while realty sales and financial investment was available in lighter than anticipated as need stays slow in the sector.
  • Apple CEO Tim Cook remained in China today to open the nation’s biggest Apple shop and go over AI combinations with Baidu, while the United States Department of Justice introduced an antitrust claim versus the business back in your home.

Meituan Q4 Results Overview

Regional services and food shipment huge Meituan reported Q4 monetary outcomes that beat many price quotes on the leading and bottom lines. The bottom line, revenues per share (EPS), beat was most noteworthy as lots of experts had actually anticipated the business’s margins to experience increased user aids to offer an edge in its competitors with Douyin (China’s TikTok).

% modifications are year-over-year (YoY)

  • Income increased 22.6% to RMB 73.695 B from RMB 60.1 B versus quote RMB 72.6 B
  • Changed earnings increased 427% to RMB 4.374 B from RMB 829mm versus price quote RMB 2.89 B
  • Changed EPS RMB 0.70 from RMB 0.13 versus price quote RMB 0.42

Secret News

Asian equities were combined over night regardless of the United States dollar’s strength as all Asian currencies were down versus the dollar, other than for the Yen and the Hong Kong Dollar, which is pegged.

Mainland China and Hong Kong were lower on numerous macro and micro aspects. China’s currency, the Renminbi (CNY), was off -0.42% versus the United States dollar, closing at 7.22 CNY per USD as the 7.20 level was breached.

After the other day’s close, insurance coverage giant Ping An, a substantial Hong Kong and Mainland index weight, launched frustrating monetary outcomes. Its Hong Kong share class fell -5.77% while the Mainland (A share) share class fell -3.50%. The news weighed on the monetary sector. Alibaba’s Bilibili stake sale triggered worries that both Alibaba and Tencent might offer down other minority stakes in numerous organizations. The larger concern is what Alibaba will make with the profits. They might return them to investors, which would be an excellent result.

PDD’s remarkable monetary outcomes resulted in some profit-taking and perhaps some rotation towards other e-commerce stocks.

Li Auto fell -10.88% after its brand-new design’s frustrating outcomes continued to weigh on the electrical car (EV) community.

Innovation was off broadly. Some indicated a Bloomberg News report on Congressional statement that Semiconductor Manufacturing International (SMIC), which fell -5.5%, broke United States law for offering chips to Huawei. Both business are limited from United States capital markets, so I am not exactly sure if United States law uses.

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