Hong Kong Underperforming Mainland Equities Post LNY Break

China Mainland equities reopened today but failed to deliver on expectations of a push higher. Mainland stocks outperformed Hong Kong equities, which gave up gains from last week.

• As we head into the Asian lunch session, equities are mixed. Hong Kong equities are lower across the board, with the HSI down 1.00%, the HS Tech index lower by 2.71%, and mainland Property underperforming the market, down 3.00% today, erasing all gains from Friday. China Mainland equities have fared better today but fell short of the expected lofty heights. The CSI300 is currently trading up 0.37%, while the ChiNext trades 0.10% higher, and the CSI1000 is unchanged.
• Chinese property-developer shares declined due to weak holiday home sales following last week's rally. Home sales during the Lunar New Year holiday dropped 40%, indicating ongoing weak demand, leading to a retreat in Hong Kong-listed developers' stocks
• Consumer spending data looks promising, as state-owned media reported a 19% jump in travel during the LNY period compared to 2019. Box office sales reached 8.02 billion yuan, a record high, and railway travel surged 36% from the 2019 period.
• Looking ahead, Tuesday will see the 1-Year and 5-Year Loan Prime Rate due in China, while Hong Kong has Unemployment Rate data."