ASIA STOCKS: HK Shut For Typhoon, Chinese Equities Slightly Lower

Chinese stocks opened higher this morning as the PBoC hinted at easing monetary policy to support growth, with major benchmarks gains about 0.4%, equities have since turned red as tech and healthcare stocks weigh on the market. Hong Kong markets are close for the morning due to Typhoon and could open if conditions improve. The HSI has fallen 3% this week, weighed down by concerns over weak Chinese economic data and disappointing earnings.

• CSI 300 (-0.27%), with the Tech Index (-1.13%), Healthcare Index (-1.18%) while Financials Index is (+0.86%) after talks of a merger Between Haitong & Guotai Junan.
• Industry insiders in China are calling for a reduction in interest rates on outstanding mortgages, as the gap between rates on existing and new home loans has widened, according to a report by the China Securities Journal.
• Sun Hung Kai Properties reported a 9% drop in profit for the year ended June 30, marking its third consecutive annual decline as Hong Kong's real estate market struggles. Underlying earnings fell to HK$21.7b ($2.8b), just missing analysts estimates of HK$22.8b. High borrowing costs and an oversupply of apartments have hurt sales, forcing developers to offer discounts, while home prices hit an eight-year low in July. Sun Hung Kai cut its annual dividend by 24% to HK$2.8p/s. Despite the downturn, rental income from investment properties rose 3%, with retail and serviced apartments offsetting losses in the office sector.