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Equities Reverse Early Move Lower As Hong Kong Outperforms


Hong Kong & Mainland China equities opened lower today however the move was quickly reversed as Hong Kong Equities are now trading 1-2% higher, while China Mainland equities somewhat lag the move, but have largely reversed the opening move lower

  • As trading gets underway, equities have seen a sharp reversal after Hong Kong Equities opened as much as 1% lower, currently the HSI now trades 1.65% higher after seeing some support around the 50-day EMA, HSTech up 2.00%. Property names are outperforming this morning which may be on the back of yesterday announcement that Chinese bank had approved 123.6b yuan of loans for property projects since January and had started issuing the funds, with the Mainland Property Index up 2.5%.
  • China mainland equities are underperformed the sharp turnaround by Hong Kong equities however still off the morning lows, the CSI 300 is up 0.13%, while the CSI1000 is up 0.15%
  • China's major stock exchanges froze the accounts of quantitative hedge fund Ningbo Lingjun Investment Management for three days after it rapidly sold 2.57 billion yuan ($360 million) in shares, disrupting normal trading order. Chinese regulators are increasing scrutiny on quant funds amid concerns about market volatility, prompting the exchanges to tighten supervision and extend reporting scope to include northbound investors via the mainland to Hong Kong stock connect.
  • There is little on the data front for the remainder of the week. Attention will be focused on any policy announcements that may be announced to support markets.

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