What is the situation in the Chinese markets that leads Jack Ma to launch Ant Group on the stock market

Ant Groupof Jack Ma, received initial approval for its possible listing on the stock market. The company could file a preliminary prospectus as soon as next month, although the date of the IPO remains uncertain.

Chinese company stocks have returned to the fray this week on the back of mostly better-than-expected first-quarter results; though expectations were low prior to the releases due to lockdowns.

Ant Group has received initial go-ahead from regulators for a IPO, but it may take some time before the company is finally listed on the public markets. Many Hong Kong values ​​resembled Alibabain the sense that they did not fall as much as the US ADR of bilibiliwhich was down -14.78%, although its Hong Kong share class was down -5.75%.

the chinese market

Yesterday’s drop in US-listed Chinese ADRs was likely profit-taking by fast money, after a strong run since mid-March. Overnight, China published moderate inflation data for the month of May (PPI +6.4% and CPI 2.1%), giving monetary policymakers more room for manoeuvre.

Today was also the reset day for many Hong Kong and China indices, leading to strong volumes. Overseas investors took notice of the mixed results in the land market (SH and SZ) as they bought $1.736m of mainland stocks today, bringing the weekly total to $5.513m.

The most traded and best performing continental stocks were foreign and domestic favourites, such as BYD (00254 CH), which rose +8.19%, CATL (300750 CH), which rose +5.25%, as well as Kweichow Moutai (600519 CH), which gained +2.57%. Mainland investors were also buyers of Hong Kong shares today, although Tencent was short-sold and Kuiashou Y meituan little was bought. Western media echoed the Shanghai and Beijing lockdowns, though the response seems very localized, unlike the cities in lockdown.

Other indicators

The Hang Seng and the Hang Seng Tech they diverged positively, gaining -0.29% and +1.62% respectively, with volume up 10.17% from yesterday, which is 127% of the one-year average. 157 stocks advanced, while 316 fell. Hong Kong short selling volume increased 16.11% from yesterday, which is 137% of the one-year average.

_{Chinese stock markets have been performing better than their Western peers}

Growth factors outperformed value, while small-caps outperformed large-caps. The most important sectors were discretionary +1.425%, technology +1.38% and communications +0.58%, while real estate fell -3.02%, health -1.75% and energy – 1.69%. Semi-finished products and automobiles performed better. The volumes of Southbound Connect were moderate/high, as mainland investors were small/medium sellers of Tencent and buyers from Meituan and Kuiashou.

Shanghai, shenzhen Y STAR Board they gained +1.42%, +1.94% and +2% with a volume of 7.83% compared to yesterday, which is 97% of the one-year average. 3,743 stocks advanced, while 632 fell. The most important sectors were discretionary, with 3.45%, materials, with 2.01%, and industrial, with 1.74%, while real estate was the only sector that fell, with a 0.29%. The auto, electric vehicle and lithium sectors were the best performers today.

Growth factors outperformed today, as did small caps. Northbound Connect volumes were moderate/high as foreign investors bought $1.736 million of mainland shares today. Chinese Treasuries gained, the CNY fell against the US dollar to 6.69 and copper fell 0.41%, Forbes US reported.