Hong Kong & China Equities Higher, China To Target Property Supply

Hong Kong & Chinese equities are higher today, largely tracking global markets. Earlier China Manufacturing PMI was below consensus coming in at 49.5 vs 50.5 and non-manufacturing was 51.1 vs 51.5 composite PMI was 51 in May down from 51.7 in Apr, later today we have Hong Kong Retail Sales, with consensus at -6.3%, up from -7% in March. China Vanke is in talks with banks to secure a $6.9b loan.

• Hong Kong equities are higher today, with property indices are again the worst performing, the Mainland Property Index is down 0.10%, while the HS Property Index is up just 0.20%, elsewhere HSTech Index is faring better up 1%, while the wider HSI is up 0.95%. In China onshore markets, the CSI300 is 0.20% higher, the CSI 300 Real Estate Index is up 1.67%, small cap indices the CSI1000 & CSI2000 are up 0.67% and 0.90% respectively, while the ChiNext is up 0.54%
• (MNI): China May Mfg. PMI Contracts To Three-Month Low - (See link)
• In the property space, Chinese policymakers are targeting the reduction of a massive housing inventory, with over 60 million unsold apartments, to address the nation's property slump. Despite recent government initiatives, including a 300 billion yuan initiative to purchase unsold homes, challenges remain in reviving home sales and alleviating oversupply issues, particularly in larger cities. China Vanke is in advanced talks with major banks for a record-breaking loan of about 50 billion yuan ($6.9 billion), aimed at alleviating liquidity concerns and avoiding potential defaults, with the facility backed by real estate assets totaling around 80 billion to 90 billion yuan, part of an asset package for collateralization.
• Looking ahead: Caixin China PMI Mfg on Monday