HK Stocks Higher On US Rate Cut, Prop Surges Ahead Of Third Plenum

China & Hong Kong's equity markets are mostly higher this morning, HK markets are out-performing as investors reacted to the latest U.S. inflation data, which indicated a slowdown and raised hopes for a dovish stance from the Federal Reserve. While China markets are mixed as investors await the start of the Third Plenum policy meetings next week, and trade balance data which is due out at some point through the day today. Property stocks have surged higher as investors expect China to announce support for the struggle sector at the Third Plenum next week.

• Hong Kong equities are higher today with the HSTech Index up 1.40% and now trades fup 4.20% for teh past week. Property indices have surged higher with the Mainland Property Index up 4.40% and now trades off just 2.40% for the week, the HS Property Index is 4.75% higher today, while the wider HSI is 1.75% higher.
• China equity markets are mixed today with the CSI 300 little changed, small-cap indices the CSI 1000 down 0.60% and the CSI 2000 up 0.45%, while the growth focused ChiNext is unchanged.
• The CSRC clamped down on short selling to support the sliding stock market, leading to concerns about further deterioration in liquidity, as trading volumes were already at an 18-month low. Despite this, analysts suggest that such restrictions may ultimately impair liquidity and fail to support asset prices, particularly affecting small-cap stocks, as per BBG.
• Looking ahead, China Trade Balance data Today