China & HK Equities Mixed, Shanghai Relaxes More Prop Restrictions

Hong Kong & Chinese equities are mixed today, property stocks are performing well after Shanghai lowered down payment ratios, while Gaming stocks are higher on the back of Citigroup saying current levels offer a good entry point. China has also setup a semiconductor investment fund after the US imposed tariffs on the sector.

• Hong Kong equities are mostly today with property names are higher on the back of Shanghai news with the Mainland Property Index is up 0.30%, while the HS Property Index is also up 0.30%, HStech Index is up 1%, while the wider HSI is up 0.70%. In China, the CSI300 is down 0.12%, while the small-cap CSI1000 and CSI2000 Indices are both dfown 0.15%, and the growth focus ChiNext Index is down 0.50%
• MNI China Press Digest May 28: Housing, FTA, Integrated Circuit - (See link)
• Shanghai has lowered down payment ratios and minimum mortgage thresholds to support its property sector, reducing down payments to 20% for first-time buyers and 30% for second-home buyers. This follows a central government initiative, including a 300 billion yuan funding package, to aid the property market after April saw the steepest home price decline in a decade. The central government has empowered local authorities to adjust down-payment ratios and mortgage rates. In September, Shanghai had already eased the minimum down-payment requirements and mortgage thresholds for certain housing types, as per BBG
• China has established its largest semiconductor investment fund, Big Fund III, with 344 billion yuan to boost its domestic chip industry amidst escalating US restrictions. This fund underscores Beijing's push for technological self-sufficiency, with significant contributions from the central government and state-owned enterprises, as tensions with the US over advanced chip access continue to rise.
• Looking ahead: China PMI on Friday, for Hong Kong we have Trade Balance later today, and Retail Sales of Friday