China & HK Equity Mixed, Property Lower After Vanke Looks To Extend

Hong Kong and China equities have opened mixed on Tuesday, with property underperforming. China northbound flows have mark two days of outflows, while investors may still hold concerns around China's willingness to support the market adequately. The iron ore price is also signally some concern around the Chinese economy, now 20% off highs from Jan 1.

• Hong Kong equities are lower today, underperforming Mainland China equities. The HSI bounced off the 100-day EMA, a level it has been unable to trade above since August 2023 and now trades down 0.36%, HSTech has see-sawed today, at one point down 0.80% to now trade up 1.00%, while property continues to underperform down 2.00% after China Vanke Co, the nations second-largest developer after reports emerged that they were in talks to extend near term maturities.
• China Equities are mostly higher today with the with the CSI300 up 0.10% while the CSI1000 is up 1.22%
• China Northbound flows were -1.30b yuan on Monday, as traders looked to book profits ahead of a busy week for global data and strong recent performance. The 5-day average of 3.15b sits above the 20-day at 2.37B.
• The number of private funds each managing more than 10 billion yuan ($1.4 billion) shrank to 98 as of Feb. 26 from 104 at the beginning of the year, with a particular downsizing in quant funds, the Shanghai Securities News reports (BBG)
• HK Financial Secretary Paul Chan is expected to ease curbs on property transactions and announce moves to lift tourism and attract more investment inflows when he releases the budget on Wednesday.
• Looking ahead, Hong Kong has Trade Balance Data out later today.