China & HK Equities Mixed, Property & EVs Higher On Strong Sales

Hong Kong and China equity markets are mixed today. The MSCI AC Asia Pacific Index hit its highest since late May amid a rally in Hong Kong-listed property on better-than-expected June home sales and electric vehicle maker shares also high following positive sales and deliveries data for June, with analysts predicting a short-term rally before the mid-July low season.

• Hong Kong equities are higher today, as they return from a break Monday. Property is the best performing sector after yesterday the top 100 developers returned a 36% m/m increase in sales, however it should be noted that sales are still down y/y, the Mainland Property Index is up 2.99%, while the HS Property Index is up 0.68%. In the tech space, HSTech Index is now down 0.70% underperforming the wider markets largely due to slightly softer prices in the US overnight, while the wider HSI is up 0.39%.
• China equity markets are mixed today with the CSI300 is down 0.10%, while small-cap indices the CSI 1000 down 0.70% and the CSI 2000 up 0.16% while the growth focused ChiNext is 0.70% lower, and finally after surging 5.75% yesterday the CSI 300 Real Estate Index is down 0.85%.
• The property market in China shows signs of recovery, with sales of existing residential properties in Shanghai reaching 26,374 units in June, marking a 41% increase from the previous month and the highest monthly transaction in three years. This surge follows the city's measures to lower downpayments and offer cheaper mortgages in late May. Beijing also saw a rise in existing-home sales, with nearly 15,000 units sold in June, the highest in 15 months, representing a 12% month-on-month increase and a 29% year-on-year rise. However, in the new-home market, while homebuyer visits have increased in Shanghai, actual transaction volumes have not yet picked up noticeably.
• Looking to next week, Tuesday we have Hong Kong Retail Sales, Wednesday we have Caixin China PMI composite & Services.