China & HK Stocks Mixed As Onshore Equities Find Support

Chinese and Hong Kong equity markets are mixed today, with investors disappointed around the lack of updates that came from the Third Plenum. The update that came late Thursday, emphasized "high-quality development" but lacked detailed measures to boost demand or address the property slump, with investors now awaiting more details expected to be released in the coming weeks. Some of China's major equity benchmarks are trading higher today, while Chinese stocks listed in HK sell-off, leading to speculation that the National Team is in the market which ties in with earlier reports from Bloomberg that the China National team has been active over the past month in supporting the market.

• Hong Kong equities are lower today, with property the worst performing after a lack of any policy update from the Third Plenum to support the troubled sector, the Mainland Property Index is down 3.65%, while the HS Property Index is down 3.10%. The HSTech Index is down 1.70%, while the wider HSI is down 2%.
• China major equity benchmarks are higher today which could be due to the National team stepping in to support the markets. The CSI 300 up 0.10%, CSI 1000 up 0.36%, CSI 2000 up 85% and the ChiNext is 0.40% higher.
• In the property space, Sino-Ocean Group announced that about half of its Class A debt lenders support a debt-management proposal involving $5.6 billion of existing debt. However, an ad-hoc group of creditors strongly opposes the proposal, citing concerns over transparency and calling for better terms, while the company also faces a potential liquidation hearing set for September 11.
• On Monday we have China 1yr & 5yr LPR rates which are expected to be left unchanged and in Hong Kong CPI Composite.