Overview of the week

  • Asian shares ended a uneven week of buying and selling, principally down on world progress considerations, whereas Chinese language property builders outperformed as political help started to emerge.
  • Zero COVID continued to be cited as a threat for Chinese language shares as Shijiazhuang, a area close to Beijing, noticed some lockdown measures, and employees at Foxconn’s Zhejiang manufacturing facility protested the mismanagement of an epidemic on the manufacturing facility.
  • Each Baidu and Kuaishou reported income this week. The previous analyst simply beat estimates because it elevated its share of China’s e-commerce market whereas the latter’s promoting enterprise continues to face headwinds.
  • Ant Group might be fined as much as $1 billion by the PBOC, which might mark the tip of its regulatory evaluation interval and result in the approval of its utility to turn into a monetary holding firm by the central financial institution.

Meituan Q3 Outcomes Overview

Meituan has been extra resilient than most platforms in latest quarters as COVID restrictions in some areas led clients to order meals supply greater than they in any other case would have. Clearly, the corporate has realized to adapt to the brand new restrictions and to ship. The corporate additionally noticed its prices drop considerably and posted a optimistic internet revenue for the primary time since 2019. Nonetheless, the corporate’s shares got here underneath stress as main shareholders Tencent and Prosus unloaded shares at a time. to cut back their capital in danger. and distribute wholesome dividends to their very own shareholders and fund share buybacks.

  • Income up +28% year-on-year to RMB 62.6 billion
  • Web revenue RMB 1.1 billion
  • Web margin 1.8%
  • Earnings per share RMB 0.18

New keys

Asian shares had been principally down in a single day, though Shanghai and the Philippines outperformed the area. China’s aggressive zero COVID coverage was on show this week as authorities tried to stem the outbreak in Shijiazhuang with out hurting the financial system.

The actual property sector was probably the greatest performing sectors on the mainland and in Hong Kong, with the PBOC saying the availability of $14 billion in M&A financing to public builders by their banks and asset managers who maintain their shares. It’s a push for public builders to accumulate failing non-public builders and one other vital central authorities transfer to shore up the struggling sector, certainly one of many who have contributed to a big rebound in latest weeks. . Nation Backyard Holdings, a developer, was probably the most traded inventory by worth in Hong Kong in a single day and gained practically +10%. Housing coverage has all the time been a balancing act between limiting extra and stopping the decline of what constitutes the vast majority of Chinese language family belongings. We should always see homebuyers return to the market as builders full initiatives and the COVID zero is progressively eased.

In response to the South China Morning Publish, President Xi is planning a go to to Saudi Arabia. Relations with the dominion are vital for China, given its want for imported oil and fuel. It’s the newest in a sequence of diplomatic overtures from the Chinese language chief, representing a big shift in tone and follow following the conclusion of the Get together Congress in October. We anticipated this as a result of the preparation for the Get together Congress required the leaders to withdraw into themselves.

Web shares have traded decrease over the previous couple of classes on small firm or sector particular information aside from Meituan earnings and 0 COVID affect considerations as China is at present in a winter flu season. The downdraft may be a technical correction after the huge rally earlier this month.

The Hold Seng and Hold Seng Tech indices closed -0.49% and -2.30%, respectively, on quantity that was up +10% from yesterday. Worth elements outpaced progress elements, whereas actual property was probably the greatest performing sectors in a single day. Mainland traders purchased $297 million internet value of Hong Kong shares in a single day.

Shanghai, Shenzhen and the STAR Board diverged to shut down 0.40%, -0.70% and -1.51%, respectively, on quantity that was down -1% from yesterday. Worth elements have overtaken progress elements in a single day on the continent. Overseas traders purchased $954 million internet value of mainland shares in a single day.

Final night time’s change charges, costs and yields

  • CNY for 7.18 USD towards 7.15 yesterday
  • CNY for 7.45 EUR towards 7.45 yesterday
  • In a single day authorities bond yield 0.99% vs. 1.00% yesterday
  • 10-year authorities bond yield 2.83% vs. 2.80% yesterday
  • China Improvement Financial institution 10-year bond yield 2.93% vs. 2.90% yesterday
  • Copper worth -0.06% in a single day

Supply : https://www.forbes.com/websites/brendanahern/2022/11/25/meituan-earnings-excel-week-in-review/

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