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HK & China Equities Sell-Off As Tech & Property Stocks Slump

ASIA STOCKS
Energy BulletsHomepagemarkets-real-timeBulletCommodities

The Hong Kong and China equity markets are lower this morning as investors reassess recent optimism about potential policy boosts from China's upcoming July meeting while tech shares particularly hit by weak cues from US markets and Micron Technology's disappointing sales forecast. Key Chinese stocks trading in Hong Kong, such as Xiaomi, Nongfu Spring, and China Mengniu Dairy, are among the biggest losers. The Hang Seng Index is also down, with notable drops in companies like Wuxi Apptec and Li Auto. The lack of positive triggers from China with investors disappointed by the recent announcement from the city of Beijing around cutting minimum down-payment ratios for for property purchases, coupled with a strong USD and weak global tech sector cues, has dampened investor sentiment. Trading volumes are higher than average for some ETFs, but overall market confidence remains low.

  • Hong Kong equities are lower today, reflecting a cautious market sentiment. The decline in US tech stocks after Micron’s sales forecast and the weakening yen contributed to a negative outlook for the region, while property stocks are lower on disappointing policy updates. The HSI is down 2.04%, the HSTech Index is down 2.48%, while the mainland Property Index is down 2.33%, the HS Property Index is down 3.06%.
  • Chinese markets are also lower this morning influenced by the yen’s significant drop and anticipation of key economic data releases. Earlier, Industrial Profits were 3.4% in May down from 4.3% in April. Recent measures by Beijing to ease homebuying requirements aim to support the real estate sector, which could provide some positive momentum. However, the overall market sentiment remains cautious amid broader regional and global economic concerns. The CSI 300 is 0.40% lower, the small-cap indices CSI 1000 is 1.60% lower, the CSI 2000 is 0.80% lower, the CSI 300 Real Estate Index is 0.85% lower while the ChiNext is down 1.05%.
  • Property space, Residential property transactions in Beijing may increase due to recent easing measures, potentially driving demand for both existing and new homes, with used home sales expected to stay around 15,000 units in July, according to market analysts. Beijing has eased homebuying requirements, reducing downpayment and mortgage thresholds, following other major cities to support the real estate sector amid a prolonged housing slump. Despite these measures, Beijing still faces significant oversupply, with new home inventory requiring 48.9 months to sell.
  • China plans to build a "digital central bank" to enhance financial technology applications, develop advanced digital infrastructure, and provide targeted technical and data support for areas like technology, green initiatives, and pensions, according to the PBOC's technology department.
  • Looking ahead, calendar is empty this week
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The Hong Kong and China equity markets are lower this morning as investors reassess recent optimism about potential policy boosts from China's upcoming July meeting while tech shares particularly hit by weak cues from US markets and Micron Technology's disappointing sales forecast. Key Chinese stocks trading in Hong Kong, such as Xiaomi, Nongfu Spring, and China Mengniu Dairy, are among the biggest losers. The Hang Seng Index is also down, with notable drops in companies like Wuxi Apptec and Li Auto. The lack of positive triggers from China with investors disappointed by the recent announcement from the city of Beijing around cutting minimum down-payment ratios for for property purchases, coupled with a strong USD and weak global tech sector cues, has dampened investor sentiment. Trading volumes are higher than average for some ETFs, but overall market confidence remains low.

  • Hong Kong equities are lower today, reflecting a cautious market sentiment. The decline in US tech stocks after Micron’s sales forecast and the weakening yen contributed to a negative outlook for the region, while property stocks are lower on disappointing policy updates. The HSI is down 2.04%, the HSTech Index is down 2.48%, while the mainland Property Index is down 2.33%, the HS Property Index is down 3.06%.
  • Chinese markets are also lower this morning influenced by the yen’s significant drop and anticipation of key economic data releases. Earlier, Industrial Profits were 3.4% in May down from 4.3% in April. Recent measures by Beijing to ease homebuying requirements aim to support the real estate sector, which could provide some positive momentum. However, the overall market sentiment remains cautious amid broader regional and global economic concerns. The CSI 300 is 0.40% lower, the small-cap indices CSI 1000 is 1.60% lower, the CSI 2000 is 0.80% lower, the CSI 300 Real Estate Index is 0.85% lower while the ChiNext is down 1.05%.
  • Property space, Residential property transactions in Beijing may increase due to recent easing measures, potentially driving demand for both existing and new homes, with used home sales expected to stay around 15,000 units in July, according to market analysts. Beijing has eased homebuying requirements, reducing downpayment and mortgage thresholds, following other major cities to support the real estate sector amid a prolonged housing slump. Despite these measures, Beijing still faces significant oversupply, with new home inventory requiring 48.9 months to sell.
  • China plans to build a "digital central bank" to enhance financial technology applications, develop advanced digital infrastructure, and provide targeted technical and data support for areas like technology, green initiatives, and pensions, according to the PBOC's technology department.
  • Looking ahead, calendar is empty this week