HK & China Equities Mixed As Property Weigh On Sentiment

Hong Kong & Chinese equities are mixed today, is has been a quiet past week for local markets. Property remains front and center on investors minds, with the BI property gauge falling 20% from recent highs as doubts remain on Beijing’s efforts to bolster the sector while developers’ liquidity pressure still persists as sales remain weak. Regulators are considering suspending data feeds to financials institutions in order to stop speculations and volatility.

• Hong Kong equities are higher today, tech stocks are the top performing largely tracking moves made overnight in the US after the Philadelphia Semiconductor Index finished the session up 4.50%. The HSTech Index is up 1.30% and is now trading back above all EMAs, while the RSI is back above 50. Property is underperforming wider markets today with the Mainland Property Index is down 1.40% and the HS Property Index is up 0.42%, the wider HSI is currently trading 0.59% higher.
• China equites are slightly lagging their HK peers , small-cap indices are the worst performing with the CSI 1000 down 1.65% and the CSI2000 down 3.27% while the Growth focused ChiNext Index is down 0.17%, the large-cap CSI 300 is up 0.37%
• In the property space, Greentown China has repurchased $150 million of its 2.3% credit enhanced bonds due 2025, representing 37.5% of the originally issued amount, leaving $250 million outstanding, with the bonds backed by an irrevocable standby letter of credit from China Zheshang Bank.
• The Shanghai and Shenzhen stock exchanges are considering suspending granular market data feeds to institutions, including quantitative funds, to combat market volatility, according to Reuters.
• (MNI): MNI China Press Digest June 6: NIM, Car Sales, Carbon (See link)
• Looking ahead: Tomorrow we have China Trade Balance data.