MONEY MASTER

Asian equities retreated on Friday as investors turned cautious,  locking in gains after a strong global rally  while awaiting clearer signals on a potential  US-Iran ceasefire extension . Regional Stocks Slip After Multi-Day Rally The  MSCI Asia-Pacific Index  fell  0.8% , snapping a  three-day winning streak . Key markets across the region also declined: Topix   -1.1% Hang Seng Index   -0.8% Shanghai Composite   -0.2% The pullback comes after a  10-day global rally  that pushed equities to record highs, leaving markets vulnerable to  short-term profit-taking . Oil Prices Ease as Ceasefire Hopes Persist Crude prices declined as optimism over diplomacy improved: Brent crude  fell  1.1% to ~US$98 per barrel WTI crude  dropped  1.6% to ~US$93 per barrel The easing reflects expectations that a  ceasefire could reopen the Strait of Hormuz , restoring oil flows and reducing inflation pressures. Markets ...

 Strong Market Debut Chinese automaker  Chery Automobile  surged  11.2%  in its first day of trading on the  Hong Kong Stock Exchange  Thursday, after raising  US$1.2 billion  in the city’s second-largest IPO this year. The stock opened at  HK$34.20 , compared with the offer price of  HK$30.75 , while the  Hang Seng Index  gained 0.1%. IPO Demand and Valuation Chery sold  297.4 million shares  at the top end of its HK$27.75–HK$30.75 range, giving the company a market value of nearly  US$23 billion . Institutional tranche oversubscribed  11.6 times Retail tranche covered an exceptional  308 times The strong demand underscores investor appetite for new energy and smart vehicle plays. Cornerstone Support Almost half of the offering was taken up by cornerstone investors, who subscribed for  US$587 million  worth of stock. Notable buyers included: China’s Enterprise Mixed-Ownership Reform Fund...

Technical Outlook Li Auto’s stock is trading above both its 20-day and 50-day moving averages, showing a strong upward trend. Technical indicators like the MACD suggest positive momentum. If the price breaks above HKD 122 with strong volume, the next resistance is at HKD 125. Business Summary Li Auto designs and sells smart electric SUVs in China. The company is part of the growing new energy vehicle sector and benefits from strong domestic demand. Financial Highlights (in million HKD) Year Revenue Net Profit Profit Margin FY2025F 178,826 11,009 6.2% FY2026F 231,437 16,196 7.0% FY2027F 269,323 20,532 7.6% Net profit is expected to grow 27% annually over the next 3 years , showing Li Auto is becoming more efficient and profitable. Profit margins are stable at around 7%, which is strong for the auto industry. Balance Sheet (FY2024): The company’s  assets far exceed liabilities , showing financial strength. Equity base remains solid , and net gearing is low, meaning low debt risk. Key...

Tariff Optimism, Tech Rally Push HSI Higher After 3-Day Dip Hong Kong’s equity market snapped a three-day losing streak on Tuesday , with investors betting that US President Donald Trump’s latest tariff threats could again morph into softer trade deals — a familiar playbook traders have dubbed the  "Trump Always Chickens Out" (TACO) trade . The  Hang Seng Index (HSI)  rose  1.1% to 24,148.07 , recovering from a 1.4% cumulative drop over the past three sessions. The  Hang Seng Tech Index  outperformed with a  1.8% surge , led by gains in heavyweight names such as: Kuaishou +5.2% Baidu +3.6% Xiaomi +2.4% Alibaba +1.5% Tencent +0.5%   (also repurchased HK$501m in shares on Monday) Onshore China indices also rallied, with the  CSI 300 up 0.8%  and  Shanghai Composite gaining 0.7% , reflecting broader optimism across the region. Market Drivers: Trade Talk Theater & Tactical Patience Tariff Timing Relief : Trump's delay of new tariffs...

Tech-led rally breaks three-day losing streak amid optimism over US trade negotiations Hong Kong stocks staged a modest comeback on Tuesday, ending a three-day slide as investors reacted positively to signals of flexibility in US trade policy. The  Hang Seng Index  edged up  0.3% to 23,960.03 , buoyed by  tech heavyweights  after the US delayed new tariffs on 14 countries, sparking hopes for softer terms ahead. The  Hang Seng Tech Index  gained  0.5% , supported by strong performances from key names: Baidu +2.6%  to HK$88.05 Kuaishou +2.4%  to HK$64.55 Xiaomi +1.7%  to HK$58.20 Tencent +0.2%  to HK$503.00 Market Catalyst: President Trump announced that  25% tariffs on Japan and South Korea  will only take effect on  August 1 , giving room for additional talks. This triggered optimism that similar flexibility could apply to other trade partners like  Malaysia, Indonesia , and  Laos , who are facing ...

After a red-hot start to 2025,  China’s tech rally is losing steam . Despite big promises in artificial intelligence (AI), investors are demanding  real earnings growth and clear macro signals  to stay bullish. Hang Seng Tech Index Stalls The  Hang Seng Tech Index  came close to correction territory this week. Only  Alibaba  saw notable post-earnings gains, thanks to its  US$53 billion AI investment plan  over the next three years and continuous AI product rollouts. Other tech giants like  Tencent ,  Baidu ,  JD.com , and  Meituan  failed to impress, despite  beating earnings expectations . AI Hype Isn’t Enough (For Now) DeepSeek’s breakthrough had  sparked a 25% year-to-date gain , but now  markets want more than hype . “Share prices have run ahead of earnings,” noted Andy Wong of Solomons Group. Investors need  tangible AI monetization and sustained business improvement , especially as  core...

Why Hong Kong Stocks Are Booming Hong Kong’s stock market is on a roll, with the  Hang Seng Index  up an impressive  16.4%  year-to-date! Tech, electric vehicles (EVs), insurance, and consumer stocks are driving the market rally, as  mainland Chinese investors  and global players return to Hong Kong stocks. What’s Making Hong Kong Hot? Here’s why everyone’s talking about Hong Kong stocks: Valuations are a steal : Trading at just  10.5x earnings , Hong Kong stocks are a bargain compared to the  20x earnings multiple in the U.S. China’s support : With  stimulus ,  policy support , and  pro-growth signals , investor sentiment is soaring. Booming sectors : From  Tencent  to  BYD , Hong Kong offers exposure to top Chinese giants in  tech ,  EV ,  finance , and  consumer sectors . If you believe in China’s growth, Hong Kong is your gateway. And now, thanks to  Singapore Depository Receipts (SDRs) , ...

  Key Takeaways: Positive Outlook for Chinese Stocks : Morgan Stanley has raised its targets for Chinese stocks for the second time in over a month, citing a  positive earnings outlook . The  MSCI China Index  is poised for its  first earnings beat in 13 quarters , signaling a potential shift toward stronger performance. Valuation Boost : Morgan Stanley’s strategists argue that  China deserves a valuation similar to MSCI Emerging Markets  and has cut its long-standing valuation discount. This is seen as a sign that China's market is emerging from years of underperformance. Tech Sector Driving Gains : The rally in  Chinese tech stocks , driven by optimism surrounding  AI  developments (particularly  DeepSeek's AI model ) and  President Xi Jinping's positive stance toward tech , is a key factor behind the strong performance. The  Hang Seng Tech Index  saw a rebound, rising 1.6%. Strong Earnings Reports : Earnings for to...

Chinese stocks rallied Friday as investors anticipated stronger growth stimulus measures ahead of a key policy meeting, offsetting broader regional caution before the release of critical U.S. jobs data. Key Market Moves: China's CSI 300 Index : Gained up to 1.8% as traders bet on fresh economic support from the upcoming Central Economic Work Conference. Hong Kong's Hang Seng Index : Jumped 1.6%. Regional Trends : While Chinese stocks provided a bright spot, indices in Japan, South Korea, and Australia posted declines. The broader Asian equities gauge rose 0.1%. Global Highlights: U.S. Market Influence : Wall Street's S&P 500 and Nasdaq 100 both saw their first declines in five sessions, down 0.2% and 0.3%, respectively. U.S. Job Market : Jobless claims rose to a one-month high, with November payroll growth estimated at 220,000, a rebound from disruptions in October. Other Regional Developments: South Korea : The won recovered from earlier declines after assurances from ...