China & HK Equities Higher, Small-Caps Up On CSRS Clarification

Hong Kong and China equity markets are slightly higher today. Tuesday's worst performing index the CSI2000 is up over 5% today after the CSRC said the latest delisting rules target “zombie” listed companies but not small-cap stocks the index, the tighter delisting rules won’t have an impact on the market in the short term, the regulator said in a statement late Tuesday. The Index is still down around 7% over the past week, versus the CSI300 is up 0.40% over the same time. Elsewhere, China's banks may become a focus today after Fitch revises down outlooks.

• Hong Kong equities are slightly higher today, the HSTech Index is up 0.20%, the Mainland Property Index is up 1% while the HSI is up 0.30%. In China, the CSI300 is up 0.40%, while the smaller-cap CSI1000 is up 3.31% while the ChiNext is up 1.20%.
• China Northbound saw 2.8b of inflows on Tuesday, with the 5-day average at -0.83billion, while the 20-day average sits at 0.21billion yuan.
• In the property space, Chinese developers, saw their shares rise in Hong Kong afternoon trading, possibly due to reports suggesting the establishment of a national real estate platform to acquire unfinished properties for affordable housing. CIFI Holdings closed 4.5% higher, while Sunac China rose 4.4% and Sino-Ocean closed 4% higher. The positive sentiment followed news that CIFI had received government financing support for 15 projects, with 68 projects included in the "white-list." However, concerns about falling home prices persisted, with Bloomberg's gauge of Chinese developers' stocks narrowing losses to 2.4%.
• Looking ahead, Hong Kong has Unemployment data due on Thursday, while China's 1 & 5 yr LPR on Monday is the next focus