HK & China Equities Lower, Property Continues To Make New Lows

Hong Kong and mainland Chinese equities tumbled as investor concerns over rising competition among Chinese tech and e-commerce giants intensified. The HSI fell 0.7%, erasing most of Monday’s gains, with tech stocks leading the decline although we trade off those levels now. PDD Holdings slumped 29% in New York after warning of unsustainable growth, triggering a broader sell-off in Chinese tech shares, including Alibaba and JD.com. The retreat reflects growing investor anxiety about the earnings outlook, despite expectations of a possible rate cut by the Federal Reserve next month.

• Hong Kong & China equities are lower today, property continues to slip with the Mainland Property Index down 1.75%, HS Property Index is down 0.55% while CSI 300 Real Estate Index is down 3.10%, Tech is off earlier lows with the HSTech Index off 0.80% while CSI 300 is down 1.75%. Major benchmarks are also lower, with the HSI down 0.30%, CSI 300 down 0.60%, while small-caps CSI 1000 & 2000 are down about 1.50%.
• Investors are pulling money from Chinese stock ETFs, like the KraneShares CSI China Internet Fund, amid concerns over China's economic outlook, with $238 million in outflows last week. Meanwhile, emerging-market debt ETFs are attracting significant inflows, fueled by expectations that the Federal Reserve will begin easing its monetary policy, sparking a shift toward riskier assets outside of China, per bbg.
• Canada is imposing new tariffs on Chinese-made electric vehicles, aluminum, and steel, including a 100% levy on EVs and 25% on steel and aluminum, starting in October. The move, aligning with U.S. protectionist measures, aims to protect domestic industries and counter China's competitive advantages, though it has drawn sharp criticism from China as an act of trade protectionism, per bbg.