{"id":3297,"date":"2023-05-02T14:38:13","date_gmt":"2023-05-02T18:38:13","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/may-holiday-is-planes-trains-casinos\/"},"modified":"2023-05-02T14:38:14","modified_gmt":"2023-05-02T18:38:14","slug":"may-holiday-is-planes-trains-casinos","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=3297","title":{"rendered":"May Holiday Is Planes, Trains, & Casinos"},"content":{"rendered":"
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Key News<\/h3>\n

Asian stocks were largely higher post yesterday\u2019s global holiday, less the United States while China remains on holiday until Thursday.<\/p>\n

Australia\u2019s central bank unexpectedly hiked interest rates by 25 basis points which had one of our currency traders fired up as they believe it is an indication that central banks, including the US Fed, will keep hiking rates. Hong Kong volumes were light with China and Southbound closed with the latter usually accounting for 1\/3 of Hong Kong trading. Hong Kong shares opened higher but faded with Hong Kong\u2019s most heavily traded Tencent up +0.41%, Alibaba HK gaining +0.3%, HSBC closing higher +4.45% on strong financial results and buyback plans, AIA up +0.59%, Meituan down -0.38%, and JD.com HK closing higher +1.69%.<\/p>\n

Real estate was the worst sector after a small distressed property developer, KWG Group (1813 HK) fell -24.27%, and defaulted after missing an interest payment. The company\u2019s problems were well known as the stock\u2019s market cap was US $448 million on Friday from a high of $4.4 billion in 2019. Labor Day travel numbers look very strong thus far with Macao\u2019s packed streets and casinos garnering attention as highlighted in MGM\u2019s financial results after yesterday\u2019s US close and strong April revenue growth of nearly 450% year over year. Our colleague Xiabing Su noticed that all train tickets at Shanghai Hongqiao train station were sold out on Friday when 19.66 million train rides were taken.<\/p>\n

Over the weekend, April\u2019s Manufacturing PMI was 49.2 versus expectations of 51.4 and March\u2019s 51.9 while the Non-manufacturing PMI was 56.4 versus expectations of 57 and March\u2019s 58.2. The \u201cofficial\u201d PMI are a survey of large companies while PMIs are a diffusion index, meaning readings above 50 indicate growth month over month. Clearly, Manufacturing was off which isn\u2019t a great sign for the global economy. Non-manufacturing held up well while business activity expectations in both surveys remained strong. The PMIs highlight that an element of China\u2019s economy, export-driven manufacturing, will face the headwind of a slowing global economy. The incremental economic rebound as noted in the Politburo\u2019s meeting last week is why there will be an emphasis on domestic consumption.<\/p>\n

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A Mainland media source noted increased government policy to energize State Owned Enterprises which is also garnering the attention of sell-side analysts. Shanghai is beta testing housing loans for families with multiple children as several cities are testing various measures to increase the birthrate. A Mainland media source noted an economist\u2019s recommendations for addressing China\u2019s demographic issue. Recommendations include improving childcare\/maternity\/paternity leave policies, extending the retirement age, and promoting immigration. The key is policymakers are aware of the issue.<\/p>\n

The Hang Seng and Hang Seng Tech were mixed +0.2% and -0.08% respectively on volume off -25.67% from Friday which is 63% of the 1-year average. 184 stocks advanced while 308 stocks declined. Main Board short volume was flat versus Friday which is 68% of the 1-year average as 18% of turnover was short turnover. Value factors outpaced growth factors as large caps outperformed small caps. Top sectors were utilities up +2.4%, industrials gaining +0.9%, and materials closing higher +0.74% while real estate fell -1.58%, staples closed lower -0.71%, and tech was down -0.45%. The top sub-sectors were utilities, consumer services, and banks while auto, real estate, and media were the worst. Southbound Stock Connect was closed.<\/p>\n

Shanghai, Shenzhen, and STAR Board are closed until Thursday.<\/p>\n

Upcoming Webinar<\/strong><\/p>\n

Join us today at 10:00 am EDT for our webinar with Jing Daily:<\/p>\n

China’s Market Resurgence: Unpacking the Latest Trends post-Pandemic Border Reopening in Q1 2023<\/strong><\/p>\n

Click here to register<\/p>\n

Last Night’s Performance<\/h3>\n

Last Night\u2019s Exchange Rates, Prices, & Yields<\/h3>\n