Hong Kong & China Equities Mostly Lower, CSI300 Fails to Break 200-day EMA

Hong Kong and China equities are mostly lower today, following moves from US stocks as investors grow worried about interest rates. There has been little else in the way of headlines, while Caixin China PMI data showed an increase from the month prior with both composite and services PMI coming in at 52.7, up from 52.5 the month prior.

• In Hong Kong, equities are mostly lower with the HSTech Index down 1.20%, the Mainland Property Index slightly higher, while the HSI is down 0.52%. In China, markets are slightly lower with the CSI300 down 0.20%, while the smaller-cap CSI1000 is down 0.70% and the ChiNext down 0.90%.
• China Northbound flows were -1.61billion yuan on Monday, with the 5-day average at 0.75billion, while the 20-day average sits at 1.28 billion yuan.
• The CSI300 was unable to break the 200-EMA of 3595 on Tuesday, with the Index having broken below here back in July 2021 and hasn't been able to break and hold above since.
• In the property space, Country Garden experienced an 83% decline in home sales for March compared to the previous year, adding to its financial struggles. The company missed its annual results deadline due to insufficient information and faces a wind-up petition after defaulting on dollar debt. China's property sector overall is showing little sign of improvement, with March home sales continuing to decline steeply. Concerns about developers' financial stability, including Country Garden and China Evergrande Group, are causing homebuyers to avoid purchasing properties from these companies. Country Garden is seeking support from regulators for its residential projects to alleviate the impact of the sales downturn on its cash flow.
• Joe Biden and Xi Jinping held a phone call where they discussed various topics, including AI, military cooperation, climate change, and drug trafficking. Biden raised concerns about China's support for Russia's defense industry and emphasized the importance of rule of law in the South China Sea. Xi expressed concerns about US restrictions on China's tech sector and warned against any US involvement in supporting Taiwanese independence. Both leaders agreed to strengthen communication on international and regional issues. Additionally, it should be noted upcoming visits by the US Treasury Secretary Janet Yellen and Secretary of State Antony Blinken.
• Looking ahead, it's a light calendar for the remainder of the week, while Hong Kong has Retail Sales later today, and S&P Global PMI on Thursday