China Market Update: Continent is still upbeat
US Federal Reserve's interest rate decision today, Asian equities were mixed overnight on light volumes and a declining US dollar. For the Mid-Autumn Festival in Hong Kong and Chuseok, or Thanksgiving Day, in South Korea, there were closures.
Banks, energy, insurance, and electric car companies led the stronger mainland mega capitalization equities. While BYD finished higher by +1.35%, CATL gained +1.58%. The consumer purchase subsidies gained by home appliance companies Midea, Haier, and Gree were +2.74%, +3.28%, and +3.26%, respectively. Based on above-average volumes, the National Team appeared active in their large and mega-cap equity ETFs, which contributed to the weakness of mid-and small-cap stocks.
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There were 107 million domestic travels during the four-day Mid-Autumn Festival weekend on the Mainland, up 6.3% from 2019 figures. Liquor stocks Kweichow Moutai (down -2.86%) and Wuliangye Yibin (down -1.38%) pulled down consumer staple stocks due to worries about weak orders for the October vacation. Due to ongoing speculation that iPhone 16 sales in China are far lower than anticipated, Apple suppliers Foxconn and LXJM saw declines of -2.6% and -3.36%, respectively. The PBOC reaffirmed its emphasis on the 1.70% 7-day repo rate. On September 25th, the medium-term lending facility (MLF) rate will be decided.
The mainland market is still devoid of animal spirits since consumer confidence is still low as a result of the impact of declining
