Mixed Ahead of Lunar New Year, CPI Declines Fastest Since Sept 09

Final day of trading ahead of the Lunar New Year holiday, after a very eventful week with multiple headlines out supporting Chinese and Hong Kong Equities markets, equities indices have seen some wild swings particularly in the small cap space.
China data was released before with CPI -0.8% YoY vs -0.5% est, Dec -0.3% (Fastest decline since Sept 2009) while PPI -2.5% YoY vs. -2.6% est, Dec -2.5%

• Hong Kong indices were somewhat volatile today largely on the back of CPI and PPI data, HSI opened down 0.60% to recover back to flat, only to then reverse that move to trade 1% lower going into lunch, Alibaba led the move lower down 6.80%, meanwhile HSTech is 0.35% lower, after being up as much as 1%, while the Mainland property index is higher up 2.00%, this outperformance could be attributed to the announcement that Shenzhen has lowered the threshold for non-local homebuyers, by easing the requirement of tax and social insurance payments to three from five years.
• China Mainland equities are outperforming Hong Kong indices, led by small caps with the CSI 1000 higher by 4.8%, CS1 300 is up 0.30% for the day.