HK & China Equities Mostly Lower, Focus Turns To Earnings

Hong Kong and China equities are lower today, as investors opt to take profit after equities notched up their longest winning streak since 2018. There has been little in the way of market headlines or economic data. Looking ahead this week, China PMI is due out on Friday, while Hong Kong sees Trade Balance, GDP data out.

• Hong Kong Equities are lower today after the HSI climb to a seven-week high last week. Investors are now looking forward to company earnings with little economic data due out this week. Baidu, NetEase, Li Auto & HKEX lead the way this week for earnings, with close eyes on Baidu & NetEase on the back of China announcing they will be tightening their grip on the tech sector. HSI is down 0.70%, HSTech down 0.40%, while the Mainland Property Index is well off earlier lows to trade just 0.39% at the break.
• China Equities are mixed today as financial underperform. The CSI300 is 0.71% lower, while the CSI1000 is trading 0.74% higher.
• China Northbound flows turned positive for year late last week and are tracking along steady with the 5-day average sit in line with the 20-day average at around 2.1b yuan above the longer term 200-day average of -0.633b
• The Chinese government seeks to boost the sales of traditional consumer products, as reported by state broadcaster CCTV, the CSI All Share auto Index traded 2.00% higher post the announcement.
• Companies have been withdrawing their applications for IPOs on China's domestic markets are regulators look to step up scrutiny.