HK & China Equities Head Lower, Tech Forms Double Top

Hong Kong & Chinese equities are lower today, equities are being dragged lower following Li Auto's 19% drop after weaker-than-expected first quarter results, Tech is lower after Tencent shut down new game DNF Mobile within an hour of debut with the HSTech index forming a doble top and now on track for the worst day in this month, while property indices are holding up slightly better than the wider markets. There is little in the way of market data today, focus will turn to FOMC minutes on Wednesday.

• Hong Kong equities are lower today, property is holding up slightly better than the wider markets with the Mainland Property Index down just 1.60% although the Hang Seng Property Index is down 1.79%, the HSTech Index is down almost 3.20%, while the HSI is down 2.05%. In China onshore markets, the CSI300 is trading down 0.40% while the small-cap indices CSI1000 & CSI2000 are down 0.80%, while the ChiNext is down 0.62%
• In the property space, China Vanke is securing more bank loans to enhance liquidity while awaiting government support for builders, the company applied for a 1.2 billion yuan loan from Bank of China for a development project in Changzhou
• Li Auto Inc.'s first-quarter vehicle sales fell short of analyst estimates, with sales reaching 24.25 billion yuan ($3.4 billion) against an expected 26.71 billion yuan. Net income was 1.3 billion yuan, below the forecasted 1.6 billion yuan. The company delivered 80,400 vehicles, including the new MEGA van, whose tepid demand led to a revised delivery target of 76,000-78,000 units, down from 100,000-130,000. Li Auto faces increased competition and a price war in China's EV market. It expects second-quarter revenue of 29.9-31.4 billion yuan, below the forecasted 38.6 billion yuan, and deliveries of 105,000-110,000 units, versus an expected 130,692
• Looking ahead, quiet week for China on the data front