Hong Kong Equities Surge Higher, MLF Sunday

Hong Kong and China equities surge higher to continue their winning streak post the LNY break, as investors hope for a MLF cut this weekend, while China consumer spending is picking up with a surge in travel spending during the LNY break.

• As we break for Asia lunch Hong Kong equity markets are surging higher, with hope for a MLF cut and consumer spending picking up, while any weakness in equities over the past week or so has been met with swift buying. It has been light on for market moving headlines today. While looking more closely at the market, the China Mainland Property Index is 4.81% higher today, this is after property developer Redsun was issued with a Wind-Up noticed yesterday. The HS Tech index trades 3.41% higher, supported by positive US tech earnings, while the HS China Enterprise Index, which tracks Chinese companies listed on the Hong Kong exchange, is up 2.44% and finally the HSI is 2.20%
• In headlines, US Secretary Of State will meet with China's Wang Yi later today, while Chinese builder Logan gets respite as a Hong Kong court dismisses petitions to wind up the business, stock is 10% higher, while bonds in the company are changed trading in the 10/12 area
• Looking ahead note that China markets return on Monday. Sunday is slated for the MLF announcement. No change is expected by the consensus in terms of the current 1yr rate at 2.50%, although some forecasters are penciling in a 10bps cut.