Explosion in Chinese Assets: HK Stocks & Concept Shares Roar Higher

Chinese assets are lighting up trading screens as investors dive back in.

We’re seeing a significant rally in Hong Kong stocks today, following a powerful surge in multiple US-listed China concept stocks overnight.

Let’s break down what’s moving.

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Overnight Surge: China Concept Stocks Take Off

Things got heated in overnight trading for US-listed Chinese companies and related ETFs.

Check out these major moves:

• YINN (Direxion Daily FTSE China Bull 3X Shares ETF): Jumped nearly 7%.
• XPeng Motors (Xiaopeng Qiche 小鹏汽车): Climbed over 6%.
• GDS Holdings (Wanguo Shuju 万国数据): Increased nearly 5%.
• Li Auto (Lixiang Qiche 理想汽车): Gained nearly 4%.
• NIO (Weilai 蔚来): Also up nearly 4%.
• Alibaba (Alibaba 阿里巴巴): Another near 4% gain.

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Hong Kong Market Joins the Rally

The momentum carried into the Hong Kong session.

The key Hong Kong Hang Seng Index kicked off higher and pushed gains past 1%.

Even more impressively, the tech-focused Hang Seng Tech Index saw its gains swell to 3% at one point during the day.

This signals strong buying interest across the board.

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Sector Spotlight: Who’s Winning?

Insurance Stocks Power Up

Hong Kong-listed insurance players had a particularly strong showing:

• PICC Group (Zhongguo Renmin Baoxian Jituan 中国人民保险集团): Surged over 5%.
• PICC P&C (Zhongguo Caixian 中国财险): Up more than 3%.
• New China Life Insurance (Xinhua Baoxian 新华保险): Also increased by over 3%.
• China Taiping (Zhongguo Taiping 中国太平): Gained over 2%.
• China Life Insurance (Zhongguo Renshou 中国人寿): Rose over 2%.
• CPIC (Zhongguo Taibao 中国太保): Up more than 2%.

This broad strength suggests growing confidence in the financial sector.

Auto Stocks Shift into High Gear

The electric vehicle (EV) and broader auto sector also saw significant advances:

• Li Auto (Lixiang Qiche 理想汽车): Rose 4.09%.
• Leapmotor (Lingpao Qiche 零跑汽车): Gained 3.14%.
• Geely Auto (Jili Qiche 吉利汽车): Increased 2.81%.

XPeng Motors (Xiaopeng Qiche 小鹏汽车) deserves a special mention, with its Hong Kong shares jumping over 5%.

This follows their impressive April 2024 delivery update released on May 1st:

• Total April Deliveries: 35,045 new vehicles.
• Year-on-Year Growth: An incredible 273% increase.
• Month-on-Month Growth: A solid 6% increase.
• XPeng MONA M03 Milestone: Surpassed 100,000 cumulative deliveries within 8 months of launch.
• XPeng P7+ Milestone: Rolled out its 50,000th vehicle just 5 months after launch.
• Year-to-Date Deliveries (Jan-Apr 2024): 129,053 vehicles, up 313% YoY.

These numbers highlight the strong consumer demand and production scale-up for key players in China’s competitive EV market.

Gold Stocks Buck the Trend

It wasn’t green across the board, however.

Gold stocks faced downward pressure:

• Tongguan Gold (Tongguan Huangjin 潼关黄金): Fell over 4%.
• Chifeng Gold (Chifeng Huangjin 赤峰黄金): Dropped nearly 4%.

This comes as spot gold prices have been adjusting recently, trading below $3250 USD per ounce, although there was a slight rebound observed after today’s market open.

Regional Markets Join the Updraft

The positive sentiment wasn’t limited to Hong Kong.

Other Asia-Pacific stock markets also posted gains today:

• Japan’s Nikkei 225 Index: +0.6%
• Australia’s S&P/ASX 200 Index: +0.7%
• South Korea’s KOSPI Composite Index: +0.06%
• Philippines Stock Exchange Index: +1.0%

This indicates a broader risk-on mood across the region, potentially fueled by factors like stable global interest rate expectations.

FAQs

What’s the main news about Chinese stocks right now?

There’s been a significant rally. Hong Kong stocks, including the Hang Seng and Hang Seng Tech indices, are up sharply. Additionally, several US-listed China concept stocks like XPeng, Li Auto, NIO, and Alibaba saw strong gains in overnight trading.

Which specific Chinese companies performed well?

Standouts include EV makers XPeng Motors (Xiaopeng Qiche 小鹏汽车) and Li Auto (Lixiang Qiche 理想汽车), tech giant Alibaba (Alibaba 阿里巴巴), data center provider GDS Holdings (Wanguo Shuju 万国数据), and several insurance firms like PICC Group (Zhongguo Renmin Baoxian Jituan 中国人民保险集团) and New China Life Insurance (Xinhua Baoxian 新华保险).

How were XPeng Motors’ recent delivery numbers?

XPeng reported delivering 35,045 vehicles in April 2024, a massive 273% increase compared to April 2023. Their year-to-date deliveries are up 313%. They also hit major production milestones for their MONA M03 and P7+ models.

Did all market sectors rise?

No, gold stocks experienced a notable decline, with companies like Tongguan Gold and Chifeng Gold falling around 4%, contrasting the broader market rally.

Overall, the sharp upward movement in Hong Kong equities and China concept stocks suggests a potential turning point or renewed investor interest in Chinese assets.

References:

• Securities Times · eCompany (证券时报·e公司) – Original Article
• Securities Times (证券时报) – Main Website

Related Articles:

• Bloomberg: Hong Kong Stocks Extend World-Beating Rally on China Support (May 2, 2024)
• Reuters: Hong Kong stocks jump as Fed relief rally continues (May 2, 2024)
• CNBC: Hong Kong’s Hang Seng index jumps 2% as Asia markets rise after Fed holds rates steady (May 2, 2024)