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China & Hong Kong Equities Mixed, Property Slumps,

ASIA STOCKS
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Hong Kong and China equities are mixed today, with Hong Kong markets again outperforming mainland stocks with the HSI has outperforming the CSI300 by 7.64% over the past month. China has announced they may support Telsa self-driving taxi trails, which have help local self driving technology shares, while sporting good manufacturing stocks also jumped after a report that the government will look at policies to promote the upgrade of sports equipment in the country.

  • Hong Kong equities are mixed today the HSTech Index is up 0.25% after falling over 2% on Tuesday, the index is still in bull market territory after climbing 22% from recent lows. The Mainland Property Index is down just over 3% today, and is now trading back below the 200-day EMA, while the wider the HSI is down 0.10%. China onshore markets are outperforming today with the CSI300 down 0.85% although we still hold above the important 200-day EMA, while small-cap indices the CSI1000 and CSI2000 are both down about 1.20%, and the ChiNext down 1%
  • China Northbound saw a -2.12b yuan outflow on Tuesday. Equity flow momentum however remains strong in the short-term with the 5-day average at 6.38b, well above the 20-day average at 0.745b and the 100-day average at 0.75b yuan.
  • In the property space, China Vanke has put a commercial project in Shenzhen up for sale, with bidding starting at approximately 2.24 billion yuan. This move is part of Vanke's strategy to divest from non-core investments due to significant industry changes, despite expressing optimism about Shenzhen's development. Earlier this week Shenzhen relaxed home buying rules, however some analysts believe these measures in may not significantly bolster market confidence. These policies aim to reduce housing inventories in non-core areas but are perceived as less aggressive compared to measures implemented by other cities. Market expectations included stronger actions such as relaxed tax treatments and eased homebuying restrictions in Shenzhen's core areas, which were not realized.
  • Analysts suggest that China might lower the Reserve Requirement Ratio (RRR) for banks this quarter to inject medium-term liquidity and bolster the economy. With anticipated increases in government and policy bank debt issuance in the second and third quarters, such a move could help mitigate potential liquidity shocks.
  • Looking forward, the calendar is light on Today with China Trade Balance due out tomorrow.
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Hong Kong and China equities are mixed today, with Hong Kong markets again outperforming mainland stocks with the HSI has outperforming the CSI300 by 7.64% over the past month. China has announced they may support Telsa self-driving taxi trails, which have help local self driving technology shares, while sporting good manufacturing stocks also jumped after a report that the government will look at policies to promote the upgrade of sports equipment in the country.

  • Hong Kong equities are mixed today the HSTech Index is up 0.25% after falling over 2% on Tuesday, the index is still in bull market territory after climbing 22% from recent lows. The Mainland Property Index is down just over 3% today, and is now trading back below the 200-day EMA, while the wider the HSI is down 0.10%. China onshore markets are outperforming today with the CSI300 down 0.85% although we still hold above the important 200-day EMA, while small-cap indices the CSI1000 and CSI2000 are both down about 1.20%, and the ChiNext down 1%
  • China Northbound saw a -2.12b yuan outflow on Tuesday. Equity flow momentum however remains strong in the short-term with the 5-day average at 6.38b, well above the 20-day average at 0.745b and the 100-day average at 0.75b yuan.
  • In the property space, China Vanke has put a commercial project in Shenzhen up for sale, with bidding starting at approximately 2.24 billion yuan. This move is part of Vanke's strategy to divest from non-core investments due to significant industry changes, despite expressing optimism about Shenzhen's development. Earlier this week Shenzhen relaxed home buying rules, however some analysts believe these measures in may not significantly bolster market confidence. These policies aim to reduce housing inventories in non-core areas but are perceived as less aggressive compared to measures implemented by other cities. Market expectations included stronger actions such as relaxed tax treatments and eased homebuying restrictions in Shenzhen's core areas, which were not realized.
  • Analysts suggest that China might lower the Reserve Requirement Ratio (RRR) for banks this quarter to inject medium-term liquidity and bolster the economy. With anticipated increases in government and policy bank debt issuance in the second and third quarters, such a move could help mitigate potential liquidity shocks.
  • Looking forward, the calendar is light on Today with China Trade Balance due out tomorrow.