China Indexes Struggle to Advance, Xiaomi and Trip.com In Focus

Li Chen
19 Nov, 2024
Hong Kong

Stock market indexes in China and Hong Kong traded in a tight range amid rising prospects of escalation of trade tensions with the U.S. and the European Union. 

The Hang Seng index edged up 0.2%, but the mainland-focused CSI 300 index turned lower by 0.7% in the late afternoon trading. 

Market indexes have been on the decline over the last six weeks after the previously promised fiscal reforms fell short of market expectations. 

Stock market indexes have lost about 25% from the peak on October 7, after several measures announced by the finance ministry and the People's Bank of China failed to revive investor confidence. 

Vice-Premier He Lifeng, in a keynote delivered at a gathering organized by the Hong Kong Monetary Authority, said China will issue long-term treasury bonds to finance its plans to assume local government debts. 

Lifeng also promised to improve mutual market access through the Stock Connect system and facilitate Chinese companies to list their shares on the Hong Kong Stock Exchange. 

 

China Stock Movers 

The Hang Seng Index increased 0.2% to 19,615.96, and the mainland-focused CSI 300 index declined 0.7% to 3,924.48. 

Trip.com advanced 5.3% to HK $503.50 after the online travel platform reported better-than-expected revenue in the third quarter. 

Revenue increased 16% to 15.9 billion yuan, or $2.2 billion, slightly higher than analysts estimates, reflecting holiday travel demand to Japan, Thailand, and Singapore. 

Xiaomi Corp. declined 3.8% to HK $27.65, trimming gains of 85% in the year so far to Monday after the company posted higher-than-expected revenue in the third quarter. 

Revenue increased 31% to 92.5 billion yuan from 70.9 billion yuan, and after-tax profit increased 9.7% to 5.3 billion yuan from 4.9 billion yuan a year ago. 

Smartphone x A IoT segment revenue rose 16.8% to 82.8 billion yuan, and electric vehicle segment and other initiatives revenue reached 9.7 billion yuan. 

Global shipment of smartphones increased 3.1% to 43.1 million units, and the company maintained its number 3 ranking in global shipment with a market share of 13.8%, according to Canalys. 

The company said its shipment ranking in mainland China rose to number 4, and market share increased by 1.2 percentage points from a year ago to 14.7%. 

In the third quarter of 2024, the deliveries of the Xiaomi SU7 Series reached 39,790 vehicles, and in October, monthly deliveries rose to 20,000 vehicles. 

Kunshan Wanyuantong Electronics Technology, a maker of printed circuit boards, soared 333% to 48.61 yuan after the company's stock began trading in Beijing.

The company priced its public offering at 11.16 yuan per share and sold 1.4725 million shares.