China & HK Equities Head Higher, More Property Restrictions Lifted

Hong Kong and China equities are higher today. Property names are benefitting from another city removing restrictions on home buying, following on from last week when Shenzhen relaxed rules, while Hong Kong markets have been supported after comments from HK Exchange CEO where he mentioned IPO's will be coming back and already have 100 applicants in the pipeline. Looking ahead we have China Trade Balance data due out throughout the day.

• Hong Kong equities are higher today with the HSTech Index up 1.46%%, the index is now up 31.26% from lows mad in Feb. The Mainland Property Index fell about 4% on Wednesday but has recovered slightly today and is up 1.40%, the wider HS Index is up 0.70%. China onshore markets are also higher today with the CSI300 up 0.65%, while small-cap and growth indices outperform large-cap with the CSI1000 up 1.40% and the ChiNext up 1.45%.
• China Northbound saw a -4.0b yuan outflow on Wednesday Equity flow momentum has dropped over the past few days with 5-day average now at 1.08b, still slightly above the 20-day average at 0.65b and the 100-day average at 0.67b yuan.
• In the property space, the city of Hangzhou has lifted all restrictions on residential property purchases, effective immediately, as announced by the local housing bureau. The city also plans to enhance credit support for the property sector, which includes offering reduced mortgage payments for select homebuyers. Additionally, Hangzhou will discontinue the practice of reviewing the qualifications of potential homebuyers.
• (BBG) CHINA PREVIEW: Exports to Show Mild Rise on Resilient Demand - (See link)
• Looking forward, China Trade Balance due out Today