Hong Kong & China Equities Mixed, Tech and Growth Outperform

Hong Kong and China equities have opened mixed today, mainland China equity is out-preforming HK equity, as markets await the Hong Kong Budget including GDP, and US data due out later today.

• Equities markets are mixed, tech stocks are the top performing sector with the HSTech index up 0.80%, while the HSI trades -0.20% lower, property again under-preforms on the back of Country Gardens Wind-up notice, with the mainland property index down 1.65%. In China, indices are higher with growth stocks out-performing the CSI300 up 0.45%, while the CSI1000 up 1.40%
• China Northbound flows were +12.24b yuan on Monday, the forth highest daily inflow since July 2023, the other three have occurred in the past month.
• Major companies with earnings due out today include Baidu Inc, Galaxy Entertainment and Sun Hung Kai Property. Baidu will be closely watched as earnings are expected to have grown by the slowest rate in a year, while investments in AI may also be a drag on results.
• Hong Kong will release the budget later today, and it's expected there will be polices aim to ease some property related curbs after home prices tumbled to a seven year low. It's also expected there will be policies announced that will look to help boost tourism and investment in the region.
• Earlier Chinese Property developer Country Garden was issued with a wind-up notice in a Hong Kong court with the first hearing expected to take place on May 17th, this follows from yesterday when China Vanke Co was reported to be in talks for a debt restructure.
• Looking ahead, Hong Kong will released the Budget with GDP data later today.