China & Hong Kong Equities Are Lower Today, Tech The Worst Performing Sector

Hong Kong & China equities are lower today, with HK equities giving up a lot of yesterday's gains and out-performance. The CSI300 has hit a key technical resistance and has failed to really test it yet. President Xi will meet with prominent US business leaders next week, US congress has been proposed that would restrict US mutual funds from investing in China equities Indices.

• Hong Kong equities are lower today giving up most of the gains made on Thursday. The HSTech Index is the worst performing sector down 3.00%, while the Mainland property Index is down 2.27%, while the wider HSI is down 1.78%. In China the CSI300 has hit the 200-day EMA has yet to really test it, the index now trades off 1%, while the smaller cap CSI1000 is down 1.05% and ChiNext is also down 1.00%.
• China Northbound flows were -6.02billion yuan on Thursday, with the 5-day average at 3.62 billion, while the 20-day average sits at 2.911 billion yuan.
• A quick wrap of the past week in the China property space, China Builder Radiance defaults on dollar bond, China Vanke secured a 14yr 1.4b yuan loan from Industrial Bank which will be used to repay the companies debts, China Evergrande's $78 Billion has been accused of a $78b fraud in the 2 years prior to defaulting, China State-Owned developer Yuexiu cancels 1B yuan bond issuance.
• Chinese President Xi Jinping is set to meet with several US business leaders next week during an annual forum in Beijing, with attendees including figures such as Tim Cook of Apple and Stephen Schwarzman of Blackstone. This meeting follows the China Development Forum, which has seen less publicity than usual, amid efforts by Chinese leadership to reassure foreign companies amid declining investment from abroad.
• A new bill in Congress aims to restrict US mutual funds from investing in certain Chinese stock index products, part of a broader effort targeting investments in China. The legislation seeks to prevent American investors from being misled about the value of Chinese companies, with additional measures proposed to increase scrutiny on Chinese companies' financial practices and their role in US supply chains. However, the bill still faces significant hurdles in Congress before potentially becoming law.
• According to preliminary data from the China Passenger Car Association, retail sales of new energy vehicles (NEVs) in China are expected to surge by 37% year-on-year and 93% month-on-month to reach 750,000 units in March. This increase is attributed to price cuts in NEVs. Additionally, retail sales of passenger vehicles are forecasted to rise by 3.7% year-on-year and 50% month-on-month to 1.65 million units in March.