Hang Seng Tech Index up 1.49%

Courtesy of AAStocks

Up 3 days in a row for this week, the HSTI is maintaining its upward momentum pretty well with Nasdaq in the green last night too. Also to take note for today, the top performer is WEIMOB INC which went up more than 10% and followed by BYD which has an impressive gain of +8.219%.

The bigger constituents for HSTI did a pretty good move today with Tencent up by +2%, Alibaba up by +0.788%, Xiaomi up by +0.516% and Meituan up just a fraction by +0.183% considering it did a big up move just yesterday. 

Only 10 losers for the HSTI for today which again are the smaller constituent stocks apart from Alibaba Health. 

Courtesy of AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: Chinese state media slams U.S. as a ‘rogue country’ for its planned ‘smash and grab’ of TikTok

China and U.S. flags are seen near a TikTok logo in this illustration picture taken July 16, 2020.

Florence Lo | Reuters

Chinese state media labeled the U.S. a “rogue country” and dubbed the potential sale of social media firm TikTok to Microsoft as “theft,” adding that Beijing could retaliate if a deal is sealed. 

Source: CNBC

As mentioned in my previous post we can see that the Chinese government is likely going to show retaliation with the actions of the US government with Apple possibly as the main target? 

I am not a user of TikTok but I am not sure what type of technology theft Microsoft would gain with TikTok based on the article. I have seen videos of TikTok and its a social network for sharing user-generated videos which to me the most valuable part of it is this network that has been built. 

Technology wise it would be similar to Youtube or what Facebook is offering unless I am wrong? 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing at +1.98% higher

Courtesy of AAStocks

Following last night's positive gain in Nasdaq, HSTI has again closed positive for today with a gain of 144.14 points (+1.98%). 

Looking at the top performers for today, HENGTEN was the big winner with a big up move of +15.546% and following that is MEITUAN at +8.674%. There were 7 stocks that were in the red for today with SMIC dropping -2.556%. The overall sentiment for HSTI still looks positive and we are still waiting to see when the ETF fund will be created. 

Courtesy of AAStocks

While Tencent and Sunny Optical are included in the benchmark Hang Seng Index, Alibaba, Meituan and Xiaomi, are not, which means most ETFs that track the main index are yet to cover these behemoths.

Source: https://www.scmp.com/business/banking-finance/article/3094735/fund-managers-expect-etfs-tracking-hang-seng-tech-index

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: Ant Group Intends to Fetch US$30B in A+H Listing, IPO in Sep Soonest: Report

Ant Group, a subsidiary of BABA-SW (09988.HK) intended to fetch approximately US$30 billion through A+H listing, Caixin reported. 

If the fundraising amount was nailed, Ant Group's IPO will topple Saudi Aramco's US$29.4 billion.

With the listing preparation under brisk processing, Ant Group was expected to begin IPO arrangement in September or October, the report added.

Source: AAStocks

This is currently touted as the largest IPO ever, even exceeding Saudi Aramco that went public on Dec 2019. Its interesting to see as Alibaba has a 33% stake in Ant Financial and apart from Alibaba listed in both NYSE and HKEx, Alibaba also owns Alibaba Health through its subsidiary Ali JK which holds 30.79% of Alibaba Health. 

Behind the scene before Jack Ma retired, we can see that he has multiple businesses across his parent company and has consistently acquired more businesses before he handed the reins over to Daniel Zhang. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: India Mulls Souring Import Scrutiny to Prevent China Imports Shift to India

In order to encourage local products, the Indian government is weighing new measures to prevent trade partners in Southeast Asia from re-routing Chinese imports to India with a low added value, as Reuters learnt from inside sources.

New Delhi intends to heighten quality standards of imports, slam quantity restriction and mount stringent disclosure norms, according to the local officials

Source: AAStocks

In a report titled ‘A Glass Half Full: The Promise of Regional Trade in South Asia’, the bank estimates India’s potential trade in goods with South Asia at $62 billion against its actual trade of $19 billion, which is a mere 3% of its global trade and about $43 billion below its potential.

Source: Economics Times

This might not be so good for South East Asia if India starts to implement any forms of restrictions or tariffs. Looking at the current trade numbers, it is likely not to grow too much if anything is implemented and with the COVID-19 situation still not in control globally, it may not help with the economic growth in the region. Also this is specifically targeting Chinese import which might be due to the border tensions as well. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: ByteDance: To Reset TikTok HQ at Ex-US Overseas Mkt

In a statement issued midnight, ByteDance disclosed a plan to reset TikTok headquarter at an overseas market outside the U.S. in order to better serve global users.

The Chinese tech company is seeking to move TikTok headquarter to London, which has been granted a green light from British officials, the Sun reported.

Source: AAStocks

While their plan to move from China to UK was meant to better serve global users, it is really to avoid the US-China tensions that is primarily hurting the Chinese companies. This might help to aid in the Microsoft acquisition with TikTok moving to a more neutral country but it won't be as fast as 15 September so likely Microsoft could squeeze a better deal out from this. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: CN Tech Firm Accuses Apple Siri of Infringement in RMB10B Lawsuit

Shanghai Zhizhen Intelligent Network Technology Co Ltd, also known as Xiaoi Robot, accused Apple's voice-recognition technology Siri of patent infringement and demanded RMB10 billion in damages.

The Chinese A.I. company asked Apple to stop manufacturing, using, selling or importing goods that are said to have infringed on the patent.

Source: AAStocks

Just when the US government is hammering away at the Chinese government and companies, the retaliation begins with this Chinese tech company suing Apple on Siri, which has been in the market for years. It may not just stop at Apple alone when Amazon and Google also have a big presence in China. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing 1.92% higher

Courtesy of AAStocks

Hang Seng Tech index since its debut has been rising steadily throughout but as mentioned in my previous post, it has been the smaller constituent companies that are pushing the index up. 

Looking at the top 5 again, we see MAOYAN and BYD taking the charge:

Courtesy of AAStocks

While the larger constituent stocks in the Hang Seng Tech Index (Alibaba, Tencent, Xiaomi) were flat or slightly positive with the exception of Meituan that moved up by 4.53%. There seem to be some rotation in play with the 30 companies that form the Hang Seng Tech Index but this is the main index that is positive as compared to HSI and HSCEI which were both down by -0.56% and -0.07% respectively. HSCEI has been defending the 10,000 mark and if it succeed, it will likely pose a good upmove in the short run. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

New Flash: JD-SW, TENCENT Team Up for JD Esports

JD-SW (09618.HK) announced the launch of JD Esports with operators like TENCENT (00700.HK)'s Tencent Games, Black Shark, Red Magic, ROG and LENOVO GROUP (00992.HK), hardware supply chains and live game streaming platforms.

The program aims to foster mobile game sector development and deepen the upstream and downstream layouts for gaming gear and e-sports tournaments.

Source: AAStocks

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: Goldman Sachs, Bank of America Asked to Back Out from Ant Group's IPO: Wire

BABA-SW (09988.HK), a major shareholder of Ant Group, told Goldman Sachs and Bank of America that they should drop out from Ant Group's planned IPO in Hong Kong and Shanghai, as the two global banks had done deals for its competitors, Bloomberg citing insiders.

Chinese firms tend to be much more cautious than their counterparts in the U.S. or Europe when it comes to non-compete commitments, said the report.

Source: AAstocks

This would likely be the biggest IPO for 2020/2021 and Goldman/BoA might not have the opportunity to be the bookmakers. This may be good news for either JP Morgan, Morgan Stanley and some of the European banks like Credit Suisse and UBS to get a piece of this cake. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: China Jul Caixin Mfg PMI Grows to 52.8, Highest in 9.5 Yrs

China's Caixin Manufacturing PMI reached 52.8 in July, up 1.6 ppts from June to the peak since February 2011. The index stayed at the expansion territory for three straight months, beating consensus of 51.1.

Source: AAStocks

It's interesting to see the PMI numbers coming out since last week as China's PMI is above 50 which signals an expansion. Anything below 50 will be considered as a retraction. 

Looking at the GDP numbers for Q2, Europe has just announced that it has contracted -12.1%, US contracted -32.9% but China has grew by 3.2%. Logically would you think that the Chinese population could push the economic growth by 3.2% during March to June? 

Reversing the thought process with US starting to open up, would Q3 see a blow out number too? 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Hang Seng Tech Index closing positive for today

Today the Hang Seng Tech Index closed positive however looking at the constituent stocks, the top 4 companies didn't do so well and it was really held up by Hua Hong Semi (1347.HK) +13.3% and SMIC (0981.HK) +8.74%.

If the heavy weighted constituent companies are not doing well despite the Index being up, we will need to be cautious to see where the market is trending.

Below is courtesy from AAstocks:

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Xiaomi (1810.HK)

Being one of the Hang Seng Tech Index, its constituent weighting is at 8.11%, ranking at #4. 

Xiaomi Corporation is a Chinese electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, earphones, shoes, fitness bands, and many other products.

Looking at the daily chart, it is definitely not pretty and it seems to be forming a lower high and lower low. However, looking at the weekly chart, if it holds within the long green bar that was formed on week of 6 July, it would likely be positive and poise for a potential move. 

It seems more volatile compared to Tencent and Alibaba as it has a big presence in India and due to the border tensions, it may get more price volatility in the short term until the governments sort out their differences. 

*I currently hold Xiaomi shares. 

1810.HK Daily

1810.HK Weekly

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Alibaba (9988.HK and BABA SW)

Sharing some view on Alibaba which is listed in both US and Hong Kong, it is also part of the Hong Kong Tech Index where it is around 8.53% of the index.

Looking at the daily and weekly chart in US, it would seem like it is now consolidating in a big range, possibly reversing in a downward trend but will need to monitor how it goes for the next few days. Looking at the weekly chart, as long as it does not close below 234.19 it would be a good bullish signal.

One thing to note as per what was shared earlier, Alibaba like Tencent is also getting the hit from the India Government due to the border tensions so we will need to monitor that situation closely. Also as Alibaba is listed in US and with the US government hitting chinese companies hard and fast, Alibaba being one of the more prominent companies would likely get the (unwanted) attention.

*I currently hold 9988.HK and the reason why I chose that is because its firstly cheaper to own in Hong Kong and being in Asia it will be easier to monitor the stock as well since both are somewhat mirroring in terms of movement. Also considering there might be a possibility that Alibaba may just list in Hong Kong in the future due to the US China tension, funds may flow back to HK which may push the prices higher.

BABA Daily

BABA Weekly

Sharing also the HK charts although it is quite similar in nature.

9988.HK Daily

9988.HK Weekly

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!