China & HK Equities Mixed, China To Defend Companies From Tariffs

Chinese and Hong Kong equity markets are mixed today, reflecting investor concerns about China's economic resilience and weak corporate earnings. The Shanghai Composite is 0.5% lower, influenced by continued contraction in China's manufacturing sector and disappointing data from property developers like New World Development Co. Meanwhile, in Hong Kong the HS is 0.35% lower after Cathay Pacific's shares declined following an engine inspection issue with its Airbus A350 fleet. Investors remain cautious, awaiting further economic data and potential government support measures.

• Hon Kong equity markets are mixed today, banks are the worst performing in the region with the HS Banks Index has dropping 2.70% & the HS Financials Index down 2%, HS Tech Index is 0.40% higher, Mainland Property Index is 1.10% higher although the HS Property Index is down 0.50%.
• China onshore markets are also mixed, the CSI300 is unchanged for the day, CSI 300 Tech is 0.40% higher, CSI 300 Real Estate Index up 1%, while the CSI New EV Index is up 2.10% after headlines that China vows to defund Chinese EV firms rights from Canada EV tariffs.
• China has threatened severe economic retaliation against Japan if Tokyo imposes further restrictions on sales and servicing of chipmaking equipment to Chinese firms, heightening tensions amid US-led efforts to limit China's access to advanced technology. Japan's concerns include potential cuts to critical mineral supplies essential for its automotive industry, with companies like Toyota deeply involved in the discussions. Despite US pressure, Japan is weighing its own strategic interests and considering the implications of tighter export controls.
• Tomorrow, we have Caixin China PMI Composite & S&P Global Hong Kong PMI