China & Hong Kong Equities Slightly Lower, Property Struggles

China & Hong Kong equities are swinging between losses and gains while property continues to struggle with major property benchmarks trading at or close to all time lows. Elsewhere China has launched an investigation into EU dairy imports in response to tariffs imposed on China's EV and Pork exports.

• The HSI is 0.25% higher today, AIA is the largest contributed to gains and trades up 4% after new business beats estimates, while tech stocks are also outperforming after strong strong earnings from Xiaomi which is up 7%, the HSTech Index up 0.50%. China mainland equities are mostly lower with small caps slightly under performing the wider markets (CSI 1000 down 0.65%, CSI 2000 down 0.70%) while the CSI 300 is down just 0.20%.
• Around 60 cities in China have expressed support for SOEs to purchase unsold homes and convert them into affordable housing, with over 25 cities officially issuing notices for these purchases. This aim is reduce excess housing inventory and alleviate financial pressure on developers, although property stocks have yet to see any positive moves on the back of these policies as it seems likely the properties will be purchased at much lower prices than initially hoped for.
• Hong Kong listed property stocks are lower today with the Mainland Property Index is down 2.15% & HS Property Index is 0.50% lower, while China mainland indices are slightly higher with Shanghai Stock Exchange Property Index up 0.50% at the CSI 300 Real Estate Index up 0.90%.
• China has initiated an anti-subsidy investigation into EU dairy imports, targeting products like cheese, in response to escalating trade tensions, including previous disputes over pork and electric vehicles. The investigation, prompted by Chinese industry groups, will examine 20 EU subsidy programs and is expected to last up to 18 months.