Hong Kong Returns From Break, Markets Higher, Property Surges

Hong Kong & Chinese equities are higher today. Hong Kong returns from a day break for Buddha's birthday, tech stocks are little changed today with Alibaba lower after 4Q profits were lower than expected, while Tencent climbed the most in three weeks on better than expected earnings. Property names are surging higher on the back of news released yesterday around the proposal for local government will be set to buy unsold Chinese homes from distressed builders, the China property stocks gauge is up over 10% at the moment.

• Hong Kong equities are mostly higher today, the property sector is surging with the Mainland Property Index up 4.79%, and is now up 36% from Apr lows, the HSTech Index is down 0.20% on mixed corporate earnings, while the HSI is up 0.50%. In China markets, the CSI300 Real Estate Index is up 4.12%, well above the CSI300 Index which is trading up just 0.30%, elsewhere CSI1000 is up 0.55% while the ChiNext is up just 0.14%
• (MNI) China Press Digest May 16: LPR, Housing Stocks, CSRC - (See link)
• In the property space, as reported on Wednesday China is looking into a proposal which would allow local governments to purchase unsold homes from distressed property developers, authorities of the Lin’an district in China’s Hangzhou city has decided to buy apartment buildings and to use as public rental housing, as per BBG
• Looking ahead, Industrial Production & Retail Sales on Friday