China & HK Equities Mixed As Investors Await Third Plenum Headlines

China & Hong Kong's equity markets are mixed again today, with HK equities performing slightly better. Chinese equities are falling out of favor with investors after a lack of any policy update recently, no headlines out of the Third Plenum policy meetings and growing odds of a Trump presidency with speculation he would would impose new tariffs on the nation. The MSCI EM ex-China ETF saw $147m inflows on Monday the most in two months.

• Hong Kong equities are mostly higher today, the HSTech Index is 1.10% higher and now 1.75% higher over the past week. Meanwhile, property stocks are performing well with the Mainland Property Index 2.05% and the HS Property Index is 1.30%, the wider HSI is 0.30% higher.
• China equity markets are mixed today with the CSI 300 is 0.10% lower, small-cap indices are lower today with the CSI 1000 down 0.50% and the CSI 2000 down 1%, while the growth focused ChiNext is 0.20% while a less closely followed index the Beijing SE 50 Index has surged 4.80%, this Index tracks small to medium high growth tech stocks.
• JD Vance, named as Donald Trump’s running mate and Vice President has emphasized China as America's biggest threat in a recent Fox News interview. Vance stated that a Trump administration would focus on China rather than the war in Ukraine, proposing negotiations to end the conflict in Ukraine to concentrate on the Chinese threat. This underscores the likely hawkish stance of their administration towards Beijing if elected.
• Looking ahead, focus will again be on any headlines from the Third Plenum policy meetings.