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China & HK Equities Mixed, CSRC Announcement Helping HK Equities

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Hong Kong and China equity are mixed today, with Hong Kong equities outperforming again today after the CSRC announced on Friday it will facilitate Hong Kong listings by leading Chinese companies and said it will expand the Stock Connect cross-border investment scheme to enhance the city's status as an international financial centre. China’s CB to further lower its MLF rates to help reduce financing cost for the economy, according to analysts.

  • Hong Kong equities are surging higher today with the HSTech Index up 2.06% and now testing both the 20 & 50-day EMAs, while the 14-day RSI has ticked into positive territory at 53, the Mainland Property Index up 0.48% however still remains below all EMA's and 14-day RSI remains below 50, while the HSI is up 1.23% and has now broken back above 100-day EMA with a potential move to the 200-day EMA at 17,266 on in sight. China Mainland equities are underperforming this morning, with the CSI300 down 0.56% and now testing the 50 & 100-day EMA, levels we have remained above since mid Feb, a break below here could signal a further leg down and a test of the 3,400 level. Small-cap indices are mixed with the CSI1000 down 0.45% while the CSI2000 is up 0.60%.
  • China Northbound had an inflow of 1.4b yuan on Thursday, momentum has been decreasing over the past week with the 5-day average at -2.68billion, while the 20-day average sits at -1.28billion yuan.
  • Analysts suggest that China's central bank may lower its medium-term lending facility (MLF) rates in the third quarter to reduce financing costs for the economy. This move could also lead to a decrease in banks' loan prime rates and help address local debt risks, according to experts cited by the China Securities Journal. However, there are concerns about the shrinking room for further reduction in loan prime rates due to pressure on banks' net interest margins caused by declining lending rates
  • Looking ahead, HK CPI Composite later today & Trade Balance on Thursday, while the calendar for China remains quiet.
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Hong Kong and China equity are mixed today, with Hong Kong equities outperforming again today after the CSRC announced on Friday it will facilitate Hong Kong listings by leading Chinese companies and said it will expand the Stock Connect cross-border investment scheme to enhance the city's status as an international financial centre. China’s CB to further lower its MLF rates to help reduce financing cost for the economy, according to analysts.

  • Hong Kong equities are surging higher today with the HSTech Index up 2.06% and now testing both the 20 & 50-day EMAs, while the 14-day RSI has ticked into positive territory at 53, the Mainland Property Index up 0.48% however still remains below all EMA's and 14-day RSI remains below 50, while the HSI is up 1.23% and has now broken back above 100-day EMA with a potential move to the 200-day EMA at 17,266 on in sight. China Mainland equities are underperforming this morning, with the CSI300 down 0.56% and now testing the 50 & 100-day EMA, levels we have remained above since mid Feb, a break below here could signal a further leg down and a test of the 3,400 level. Small-cap indices are mixed with the CSI1000 down 0.45% while the CSI2000 is up 0.60%.
  • China Northbound had an inflow of 1.4b yuan on Thursday, momentum has been decreasing over the past week with the 5-day average at -2.68billion, while the 20-day average sits at -1.28billion yuan.
  • Analysts suggest that China's central bank may lower its medium-term lending facility (MLF) rates in the third quarter to reduce financing costs for the economy. This move could also lead to a decrease in banks' loan prime rates and help address local debt risks, according to experts cited by the China Securities Journal. However, there are concerns about the shrinking room for further reduction in loan prime rates due to pressure on banks' net interest margins caused by declining lending rates
  • Looking ahead, HK CPI Composite later today & Trade Balance on Thursday, while the calendar for China remains quiet.