Equities Head Lower, Amid A Lack Of Policy Updates

Hong Kong and China equity markets are lower today. In Hong Kong, stocks opened higher on hopes for market-boosting measures from Chinese authorities, but overall gains were limited and have since vanished. While Chinese onshore markets opened lower amid ongoing economic concerns and a lack of fresh policy catalysts.

• Hong Kong equities are mostly lower this morning with the HSI 0.48%, HSTech Index is 1.35% lower, while property is the worst performing sector with the Mainland Property Index down 2.09% and the HS Property Index down 1.36%
• China onshore equities are also lower today with the CSI 300 Index down 0.49%. Small-cap indices also fell, with the CSI 1000 down 1.37% and the CSI 2000 down 1.62%. The CSI 300 Real Estate Index saw a significant decline of 2.33%.
• Investors are awaiting policy developments, especially regarding the potential waiver of the 20% tax on dividends from Hong Kong stocks bought via Shanghai and Shenzhen links. This uncertainty continues to weigh on market sentiment.
• Chinese authorities' cautious stance on monetary easing, despite the economy's struggles, is contributing to investor caution. The PBOC's focus on maintaining exchange rate stability is a key factor in their policy decisions.
• The CSRC introduced eight measures to reform the STAR market in Shanghai, focusing on facilitating M&As, optimizing IPO pricing, increasing lock-up periods for institutional investors, enhancing supervision, and improving the efficiency of financing approvals.
• Later today we have BoP Current Account Balance, and CPI composite at 1830 AEST/ 1630 HKT