HK & China Equities Recoup Earlier Losses, Property Underperforms

Hong Kong and China equities have opened mostly lower to start the week, although we are off lows from earlier in the day. The market is eagerly awaiting the National Peoples Congress on Tuesday to hear about further policies that could stimulate the markets. Recent policies have been seen to be supportive but there are still worries about whether or not this has just short-term fixes, as the property market still continues to struggle.

• Hong Kong Equity markets are mostly off lows from earlier today, with the HSI down 0.20% after being down 0.70%, while HSTech turned positive earlier however trades down 0.25% at the moment, while the Mainland Property Index is the worst performer down 2.80% and down 8.22% over the past week. China Mainland Equities are performing better with equities now mostly higher, the CSI 300 is up 0.10% while the CSI1000 is flat, the ChiNext is out-performing the wider market up 0.65 for the day.
• China Northbound flows were -5.333b yuan on Friday, with the 5-day average now 4.70b, while the 20-day is at 3.08b yuan.
• The Hong Kong Budget released last week was seen to be underwhelming for the most part other than for the property market after the government removed all property curbs, and over the weekend the 10 major residential estates booked 27 sales, 3.5 times the previous weekend and the highest sales number in more than a year
• Earlier, China Feb. Vehicle Inventory Alert Rises to 64.1 vs 59.9 prior.
• Looking ahead, Tuesday Premier Li Qiang will deliver the Government Work Report at the Nationals People Congress, while Caixin China PMI data is due out.