MNI China Daily Summary: Friday, May 17

MNI BRIEF: China Cities Must Ensure Housing Project Delivery

MNI BRIEF: PBOC Sets A New Tool To Bail Out Property Sector

MNI BRIEF: PBOC Abolishes Lower Housing Mortgage Limit

MNI BRIEF: China To Acquire Housing, Land Stocks From Developers

MNI BRIEF: China April Data Shows Insufficient Demand - NBS

Canadians Buy Record CAD35.6B In Foreign Securities In March

MNI: FOREIGN HOLDINGS OF CANADA SECURITIES +14.4B CAD IN MAR

EZ/UK Bond Supply Calendar: EFSF Synd; SK Auction, BoE APF Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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China & Hong Kong Equities Head Higher As Tech And Property Surge

ASIA STOCKS
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Hong Kong and China equities are higher today following global markets higher after US Tech giants Alphabet and Microsoft reported strong earnings. Like other big techs, Alphabet has been plowing money into developing AI, a strategy that has helped drive demand for its cloud services. Property names have surged higher after Cifi reported they got government funding, while Iron Ore is near seven week highs on signs of economic recovery in top consumer China and a drop in export flows from Australian producers.

  • Hong Kong equities are surging higher today with the HSTech Index up 3.66%, and has now broken above the 200-day EMA for the first time since November, the 14-day RSI has ticked higher again to 63, the Mainland Property Index up 4.79% at 1,295.15 and is now above the 100-day EMA after Cifi reported they got government “white-list” funding support for 24 projects in 1Q, while the wider the HSI is up 1.98%, and has broken through the 200-day EMA something we have not traded above since July 2023. China Mainland equities are again underperforming this morning, with the CSI300 up 1%, the index has once again bounced straight off the 50 & 100-day EMAs. Small-cap indices are performing slightly better with the CSI1000 and CSI2000 both up 1.50% while the ChiNext is up 2.50%.
  • China Northbound had an inflow of 0.3b yuan on Thursday, momentum has picked up slightly from the week prior but still remains in the negative territory with the 5-day average at -0.62billion, while the 20-day average sits at -0.66billion yuan.
  • China plans to enhance informal guidance, termed as window guidance, among state-owned banks to stabilize credit growth and stimulate economic development, as per a State Council report. Deputy Finance Minister Liao Min presented a report on state-asset management in financial institutions to the National People’s Congress Standing Committee. The report also indicates China's backing for large state-owned banks to issue Total Loss-Absorbing Capacity (TLAC) bonds, although specific details were not provided.
  • Looking ahead, China PMI on Tuesday
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Hong Kong and China equities are higher today following global markets higher after US Tech giants Alphabet and Microsoft reported strong earnings. Like other big techs, Alphabet has been plowing money into developing AI, a strategy that has helped drive demand for its cloud services. Property names have surged higher after Cifi reported they got government funding, while Iron Ore is near seven week highs on signs of economic recovery in top consumer China and a drop in export flows from Australian producers.

  • Hong Kong equities are surging higher today with the HSTech Index up 3.66%, and has now broken above the 200-day EMA for the first time since November, the 14-day RSI has ticked higher again to 63, the Mainland Property Index up 4.79% at 1,295.15 and is now above the 100-day EMA after Cifi reported they got government “white-list” funding support for 24 projects in 1Q, while the wider the HSI is up 1.98%, and has broken through the 200-day EMA something we have not traded above since July 2023. China Mainland equities are again underperforming this morning, with the CSI300 up 1%, the index has once again bounced straight off the 50 & 100-day EMAs. Small-cap indices are performing slightly better with the CSI1000 and CSI2000 both up 1.50% while the ChiNext is up 2.50%.
  • China Northbound had an inflow of 0.3b yuan on Thursday, momentum has picked up slightly from the week prior but still remains in the negative territory with the 5-day average at -0.62billion, while the 20-day average sits at -0.66billion yuan.
  • China plans to enhance informal guidance, termed as window guidance, among state-owned banks to stabilize credit growth and stimulate economic development, as per a State Council report. Deputy Finance Minister Liao Min presented a report on state-asset management in financial institutions to the National People’s Congress Standing Committee. The report also indicates China's backing for large state-owned banks to issue Total Loss-Absorbing Capacity (TLAC) bonds, although specific details were not provided.
  • Looking ahead, China PMI on Tuesday