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HK & China Equities Lower As Market Awaits Third Plenum Updates

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China & Hong Kong's equity markets are mixed again today, with stocks in Hong Kong particularly those linked to China's economy, facing declines amid concerns over economic growth prospects, the HS China Enterprises Index dropped by up to 1.5%, marking a second consecutive day of losses. Investor sentiment was dampened by downgraded GDP forecasts for China from major global investment banks, the market is also worried about what a Trump presidency would mean for China. There was no major economic data released in the region today with the market awaiting any headlines that come out of the Third Plenum meetings, although these meetings are being held behind closed doors.

  • Hong Kong equities are lower today, tech stocks are the worst performing with the HSTech Index down 1.73% and we are now flat over the past 5 sessions. Meanwhile, property stocks are also lower with the Mainland Property Index down 0.85% and the HS Property Index off 1.57%, the wider HSI is 1.37% lower.
  • China equity markets are mixed today with the CSI 300 is 0.21% higher, small-cap indices are lower with the CSI 1000 down 0.37% and the CSI 2000 is down 0.48%, while the growth focused ChiNext is 0.40% higher.
  • Analysts suggest China may cut interest rates or reduce banks’ reserve requirements by late third quarter or fourth quarter to bolster economic support, influenced by global rate cuts and expected improvements in Chinese banks’ net interest margins, according to Shanghai Securities News
  • Outflows from US listed ETFs that track Chinese equities have experience their sixth consecutive week of outflows, according to BBG. Recent economic indicators from China, such as inflation, trade, and credit data, have fallen short of expectations. This has heightened concerns about China's economic outlook, while overnight major global investments banks including Goldman Sachs, Barclays & JP Morgan all lower their GDP forecasts for China, there is also growing concern that a Trump presidency will have a negative impact on the region.
  • Looking ahead, focus will be on any headlines from the Third Plenum.
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China & Hong Kong's equity markets are mixed again today, with stocks in Hong Kong particularly those linked to China's economy, facing declines amid concerns over economic growth prospects, the HS China Enterprises Index dropped by up to 1.5%, marking a second consecutive day of losses. Investor sentiment was dampened by downgraded GDP forecasts for China from major global investment banks, the market is also worried about what a Trump presidency would mean for China. There was no major economic data released in the region today with the market awaiting any headlines that come out of the Third Plenum meetings, although these meetings are being held behind closed doors.

  • Hong Kong equities are lower today, tech stocks are the worst performing with the HSTech Index down 1.73% and we are now flat over the past 5 sessions. Meanwhile, property stocks are also lower with the Mainland Property Index down 0.85% and the HS Property Index off 1.57%, the wider HSI is 1.37% lower.
  • China equity markets are mixed today with the CSI 300 is 0.21% higher, small-cap indices are lower with the CSI 1000 down 0.37% and the CSI 2000 is down 0.48%, while the growth focused ChiNext is 0.40% higher.
  • Analysts suggest China may cut interest rates or reduce banks’ reserve requirements by late third quarter or fourth quarter to bolster economic support, influenced by global rate cuts and expected improvements in Chinese banks’ net interest margins, according to Shanghai Securities News
  • Outflows from US listed ETFs that track Chinese equities have experience their sixth consecutive week of outflows, according to BBG. Recent economic indicators from China, such as inflation, trade, and credit data, have fallen short of expectations. This has heightened concerns about China's economic outlook, while overnight major global investments banks including Goldman Sachs, Barclays & JP Morgan all lower their GDP forecasts for China, there is also growing concern that a Trump presidency will have a negative impact on the region.
  • Looking ahead, focus will be on any headlines from the Third Plenum.