Hong Kong & China Equities Mixed, Chinese Prop Names Get Boost

Hong Kong & Chinese equities are mixed today, Chinese property stocks are performing well after Shenzhen, Guangzhou & Shenyang follow Shanghai in easing requirements for home down payments and mortgages. There is has been little else of note in the region this morning.

• Hong Kong equities are lower today, HK listed property names are lagging their Chinese listed peers, although outperforming the rest of the market, with the Mainland Property Index down 0.85%, the HS Property Index down 1.28%, HSTech Index is down 1.40%, while the HSI is down 1.13%. China onshore markets are higher today, the CSI300 Real Estate Index is up 0.90% although well off opening highs, small-cap indices are down about 0.65%, while the CSI 300 is up 0.50%.
• (MNI): China Press Digest May 29: Yuan, Housing, Consumption - (See link)
• (MNI): IMF China 2024 GDP Growth Revised Up - (see link)
• In the property space, Major cities in China, including Shanghai, Shenzhen, and Guangzhou, have reduced downpayment requirements and mortgage rates to stimulate the property market, following government initiatives aimed at aiding the struggling sector. This move is anticipated to improve market sentiment and sales, although concerns persist over falling property values and incomplete developments. Some Country Garden Creditors Got 4.8% Yuan Bond Payment.
• Money managers increased investments in exchange-traded funds tracking Chinese stocks for the second consecutive week, with China recording the largest inflows across emerging markets, amounting to $610.3 million. This surge follows government measures to bolster market confidence, particularly in the property sector, and signals renewed investor interest in Chinese assets amid broader emerging market inflows.
• Looking ahead: China PMI and Hong Kong Retail Sales of Friday