Hong Kong and China Equities Give Back Some of Last Weeks Gains

Hong Kong and China equities had strong past weeks, up 2-4%. There were little in the way of major market leading headlines, while in data the 5yr LPR dropping 25bps to 3.95% was the major eco announcement. Looking ahead this week, China PMI is due out on Friday, while Hong Kong sees Trade Balance, GDP data out.

• As equities markets have opened the week mixed. HSI and HStech are down ~0.70% while mainland property is the worst performing down trades 2.40% lower. China Mainland equities are also lower with the CSI300 down 0.60%, while the CSI1000 is down 0.40%
• China Northbound flows turned positive for year late last week and are tracking along steady with the 5-day average sit inline 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
• South Korean visitors to China surged 900% in January from the same period a year ago