HK & China Equities Mixed, As Investors Await Corporate Earnings

Hong Kong and China equity markets have been mixed and well off highs from earlier this morning, as investors await earnings from some major companies including EV maker BYD. Regulators urge banks to adopt a "whitelist" system to speed up loan approvals for private property developers, with a directive last week to complete approvals and issue loans by June-end, covering projects requiring 1.5 trillion yuan in fresh financing, Reuters sources say. Hong Kong has Trade Balance data due later today.

• Hong Kong equities are mostly higher, the Mainland Property Index was up as much as 3.71% in early morning trade and has given up most of those gains are we come back from the break, trading just 0.80% higher, the HSTech Index trades up 0.30% after breifly trading down for the day, while the wider HSI is up 0.30%. In China, equity markets are mixed, with the CSI300 unchanged for the day, while the smaller cap focused CSI1000 down 1.00% and ChiNext up 0.17%
• China Northbound flows were 5.6billion yuan on Friday, with the 5-day average at -1.0billion, while the 20-day average sits at 2.61 billion yuan.
• (Reuters) - China pushes banks to speed approvals of new loans to private developers. (See link)
• China's central bank governor Pan Gongsheng affirms the nation's property market has a solid foundation for long-term health and stability, noting limited financial system impact from market fluctuations. Speaking at the China Development Forum, Pan highlights progress in resolving local debt risks and vows to continue financial sector opening-up efforts. He expresses confidence in meeting the 2024 GDP growth target of approximately 5% and pledges to enhance counter-cyclical policy adjustments, emphasizing the importance of a mild price rebound in monetary policy considerations.
• Top executives of foreign industrial and technology conglomerates highlight China's focus on advancing high-end manufacturing and fostering new quality productive forces, which they believe will create fresh growth points for multinational corporations, especially in green and strategic emerging industries. They note China's rapid adoption of new technologies, making it a highly dynamic market, while emphasizing their continuous investment in the country's green transition and innovation. China's actions to remove restrictions on foreign participation in manufacturing and increase openness in various sectors further attract foreign investment, particularly in high-tech manufacturing, which saw a 10.1% increase in foreign direct investment in the first two months of the year.
• Looking ahead, it's a quiet week for China econ data, while Hong Kong has Trade Balance data later today