China & HK Equities Give Back Earlier Gains, Outflows Increase

China and Hong Kong equities are giving up some of their earlier gains as Asian markets stabilize after a period of extreme volatility.

• Equities markets are now little changed, major benchmarks are +/- 0.10%, small-cap indices are performing much better with the CSI 1000 & 2000 up around 1.25%.
• The US plans to propose a rule barring Chinese software in autonomous vehicles with Level 3 automation and above, citing security concerns about data collection. This move, along with existing tariffs on Chinese-made electric vehicles and restrictions on using batteries from China, reflects heightened tensions between Washington and Beijing.
• China's property sector downturn is expected to continue for several more quarters despite supportive measures, according to Allianz Global Investors.
• Investors pulled a record $533 million from iShares MSCI China ETF (MCHI) last week after China announced it would stop publishing daily flows data from mid-August, raising concerns about transparency. The move comes amid declining global confidence in China's economy and markets and a nearly 20%y/y drop in new-home sales in July.
• This week, China has Trade Balance data on Wednesday, CPI & PPI on Friday. Hong Kong just has Foreign Reserves data tomorrow.