share this article!

FEBRUARY 16, 2021, BEIJING, CHINA: In Beijing, China, an advertisement for e-CNY, the digital money issued by China’s… [+] central bank. The date is Tuesday, February 16, 2021. Beijing is the third city in the DCEP (Digital Currency, Electronic Payment) programme to test the adoption of e-CNY. – PHOTO: Feature China/Barcroft Studios/Future Publishing (Photo credit should be Feature China/Barcroft Media via Getty Images)
Getty Images/Barcroft Media
Important Information
Despite thin volumes, Asia was a sea of red due to fears about the spread of the delta variation and the poor performance of US markets on Friday. Because the Mainland market was somewhat off, Chinese investors in China were less pessimistic. Foreign investors in China, who primarily invest in Hong Kong and US stocks, were far more gloomy, which is unsurprising given the daily barrage of negative stories in the United States.
In both Hong Kong and China, healthcare thrived, but the electric vehicle ecosystem was uneven, with automakers and battery producers seeing selling while metal stocks held up. Following Xpeng’s lead, Nio and Li Auto will both list in Hong Kong.
Listed in Hong Kong Although sell-side analysts are growing more vocal about the attractive prices in the area, China internet names remained weak.
Evergrand, a property developer, has emerged as a source of concern. I thought it was fascinating that a Mainland source mentioned the first personal bankruptcy in China, which was won by a Mr. Liang of Shenzhen.
Corn and soybean imports for June were revealed on Sunday. Both categories have risen since May.
Today, foreign investors were net sellers of Hong Kong equities, while mainland investors were active purchasers of Mainland stocks.
The PBOC published a white paper titled “Progress of E-CNY Research and Development in China” on Friday. We now know that China’s digital renminbi will be known as E-CNY. According to the article, according to a 2019 PBOC survey, mobile payment accounts for 66% of all transactions in China. The conspiracy theorists who saw the E-CNY as a danger to the US dollar’s dominance will be disappointed to learn that it will initially only be accessible for domestic transactions. Because E-CNY is just a currency, it poses no danger to mobile payment wallets like Alipay or WePay. It will be non-interest bearing like M0.
ADDITIONAL INFORMATION FOR YOU

kraneshares kraneshares kraneshares kraneshare

kraneshares sector performance

kraneshares H-Share Update on Stock Performance
On turnover that was 7% lower than Friday, the Hang Seng Index and Hang Seng TECH Index opened down and stayed there to close -1.84 percent and -2.4 percent, respectively, on volume that was 87 percent of the 1-year average. The MSCI China All Shares Index, which includes 208 Chinese companies listed in Hong Kong, fell -2.07 percent, with healthcare rising by 0.095 percent, discretionary -3.22 percent, communication -2.6 percent, real estate -2.6 percent, staples -1.46 percent, financials -1.25 percent, and materials -0.99 percent. Tencent sank -2.57 percent, Meituan fell -5.02 percent, Alibaba HK fell -3.25 percent, HK Exchanges fell -0.38 percent, Xiaomi fell -0.52 percent, AIA fell -3.28 percent, BYD fell -1.98 percent, Ping An Insurance fell -1.29 percent, SMIC fell -3.6 percent, and Wuxi Biologics fell -3.6 percent. Southbound Stock Connect saw Mainland investors sell $229 million worth of Hong Kong equities today, accounting for 13.3 percent of Hong Kong turnover.
Update on A-Share
Shanghai, Shenzhen, and the STAR Board all experienced a bumpy session, closing -0.01%, -0.07%, and -0.72%, respectively, on volume that fell -4.84 percent from Friday, or 124 percent of the one-year average. Healthcare was up 2.2 percent, discretionary was up 0.41 percent, and staples were up 0.07 percent, while real estate was down 2.21 percent, materials was down 1.67 percent, communication was down 1.63 percent, utilities were down 1.08 percent, and energy was down 0.69 percent in the MSCI China All Shares Index. China Northern Rare Earth, which gained +2.36 percent, CATL, which fell -1.41 percent, Canfeng Lithium, which gained +0.98 percent, BYD, which gained +0.47 percent, Hoperun Software, which fell -13.73 percent, Longi Green Energy, which fell -0.99 percent, COSCO Shipping, which gained +3.25 percent, and Tianqi Lithium, which fell -3.29 percent were the most heavily traded stocks on the Mainland by value. Northbound Stock Connect volumes were moderate/high, with foreign investors purchasing $674 million in Mainland stocks, accounting for 5.7 percent of total Mainland turnover. Bonds rose, the Chinese yuan fell against the dollar, and copper fell.
Exchange Rates, Prices, and Yields from the Previous Night

6.49 CNY/USD vs. 6.48 CNY/USD on Friday
On Friday, the CNY/EUR exchange rate was 7.66 vs 7.65.
1.70 percent versus 1.72 percent for 1-day government bonds. Friday
The yield on a 10-year government bond is 2.95 percent, compared to 2.84 percent on a 5-year government bond. Friday
3.34 percent yield on a 10-year China Development Bank bond vs 3.34 percent yield on a 10-year China Development Bank bond Friday
Overnight, the price of copper fell by 0.38 percent.

KraneShares Information
The investment manager for KraneShares ETFs is Krane Funds Advisors, LLC. Our China-focused ETFs offer investors a way to capitalize on China’s prominence as a key component of a well-designed investment portfolio. We aspire to create cutting-edge, first-to-market strategies based on our strong partnerships and extensive investment experience. We seek to provide real diversity by keeping investors up to date on global market developments. China International Capital Corporation owns the majority of Krane Funds Advisors, LLC (CICC)./nRead More

share this article!