HK & China Equities Head Lower As Market Await Third Plenum Update

China & Hong Kong's equity markets are off earlier highs, after reports that Biden was looking into trade restrictions on companies that provide advanced semiconductors technology to China, growing odds that Trump will win the upcoming election and finally the market is also awaiting policy announcements from the China's Third Plenum.

• Hong Kong equities are mixed today, the HSTech Index is 0.90% higher and now 1.50% higher over the past week. Meanwhile, property stocks are performing well with the Mainland Property Index 2.86% and the HS Property Index is 1.30%, the wider HSI is little changed.
• China equity markets are lower today with the CSI 300 is 0.20% lower, small-cap indices are lower today with the CSI 1000 down 0.50% and the CSI 2000 down 1%, the growth focused ChiNext is 0.44% higher, while a less closely followed index the Beijing SE 50 Index has surged 5.90%, this Index tracks small to medium high growth tech stocks.
• JD Vance, named as Donald Trump’s running mate and Vice President has emphasized China as America's biggest threat in a recent Fox News interview. Vance stated that a Trump administration would focus on China rather than the war in Ukraine, proposing negotiations to end the conflict in Ukraine to concentrate on the Chinese threat. This underscores the likely hawkish stance of their administration towards Beijing if elected.
• Looking ahead, focus will again be on any headlines from the Third Plenum policy meetings.