MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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HK & China Equities Heads Lower As Evergrande Troubles & Tech Turns

ASIA STOCKS
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Hong Kong and China equities are lower today, with the tech and property sectors weighing on the market, tech names have been impacted after Nvidia sold off after unveiling its lasted AI processor at its GTC conference in San Jose earlier today, the EU is considering formal reviews of chips from China, while WuXi AppTech dropped 8.3% after giving weak 2024 guidance. Chinese regulators have stated the China Evergrande inflated revenue by more the $78b in the two years prior to defaulting.

  • Hong Kong equities are lower today, the tech space is the the worst performing sectors as the HSTech Index trade down 1.83% while the Mainland Property Index is down about 1.72%, the wider HSI is down 1.20%. In China equiites are lower although out-performing Hong Kong equites, the CSI300 down 0.23%, while the CSI1000 is down 0.32% and the ChiNext is down 0.65%.
  • China Northbound flows were 2.8 billion yuan on Monday, with the 5-day average at 2.07 billion, while the 20-day average sits at 3.65 billion yuan.
  • In the property space, China Evergrande has been accused of falsely inflating revenue by more than $78b in the two years leading up to its failure according to the CSRC with much of the blame being put on the founder and chairman Hui Ka Yan. New home sales rose in Shanghai and Beijing and held steady in Guangzhou and Shenzhen, while Bloomberg reported Chinese new-home prices face steep declines in 2024 due to the combination of Vanke's debt crisis impacting buyer confidence, a surge in second-hand home inventory, and weakening pricing power for developers, particularly Country Garden, amidst a housing glut and liquidity constraints.
  • The European Union is considering a formal review of the widespread use of mature or lower-end chips from China, echoing US concerns about national security risks and global supply chain vulnerabilities. This potential investigation may lead to joint measures with the US to address distortions in the global supply chain for these critical but not cutting-edge semiconductors.
  • The Chinese government's initiative to encourage equipment renewal and consumer appliance trade-ins is expected to boost consumption and investment, potentially mobilizing up to 5 trillion yuan in investment and stimulating demand of over 1 trillion yuan annually, with an emphasis on voluntary decisions by consumers and corporations.
  • Looking ahead, there is little on the calendar today, Wednesday loan prime rates are due out.
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Hong Kong and China equities are lower today, with the tech and property sectors weighing on the market, tech names have been impacted after Nvidia sold off after unveiling its lasted AI processor at its GTC conference in San Jose earlier today, the EU is considering formal reviews of chips from China, while WuXi AppTech dropped 8.3% after giving weak 2024 guidance. Chinese regulators have stated the China Evergrande inflated revenue by more the $78b in the two years prior to defaulting.

  • Hong Kong equities are lower today, the tech space is the the worst performing sectors as the HSTech Index trade down 1.83% while the Mainland Property Index is down about 1.72%, the wider HSI is down 1.20%. In China equiites are lower although out-performing Hong Kong equites, the CSI300 down 0.23%, while the CSI1000 is down 0.32% and the ChiNext is down 0.65%.
  • China Northbound flows were 2.8 billion yuan on Monday, with the 5-day average at 2.07 billion, while the 20-day average sits at 3.65 billion yuan.
  • In the property space, China Evergrande has been accused of falsely inflating revenue by more than $78b in the two years leading up to its failure according to the CSRC with much of the blame being put on the founder and chairman Hui Ka Yan. New home sales rose in Shanghai and Beijing and held steady in Guangzhou and Shenzhen, while Bloomberg reported Chinese new-home prices face steep declines in 2024 due to the combination of Vanke's debt crisis impacting buyer confidence, a surge in second-hand home inventory, and weakening pricing power for developers, particularly Country Garden, amidst a housing glut and liquidity constraints.
  • The European Union is considering a formal review of the widespread use of mature or lower-end chips from China, echoing US concerns about national security risks and global supply chain vulnerabilities. This potential investigation may lead to joint measures with the US to address distortions in the global supply chain for these critical but not cutting-edge semiconductors.
  • The Chinese government's initiative to encourage equipment renewal and consumer appliance trade-ins is expected to boost consumption and investment, potentially mobilizing up to 5 trillion yuan in investment and stimulating demand of over 1 trillion yuan annually, with an emphasis on voluntary decisions by consumers and corporations.
  • Looking ahead, there is little on the calendar today, Wednesday loan prime rates are due out.