Property Recovery Extends

The Hang Seng added 3.1% on Tuesday, while the CSI 300 lagged, adding 0.2%.

• The latest move higher in property sub-indices stood out.
• Sentiment surrounding property developers is seemingly improving, with focus on already announced policymaker support, as well as the potential for more.
• Expectations surrounding support for troubled China Vanke allowed the name to add 10%.
• This was despite reports suggesting that two of China's largest banks have refused to sign off on a syndicated loan to Vanke and Moody’s cutting the name to junk status.
• After market BBG reports pointed to Vanke entering debt swap talks with banks as it looks to avoid defaulting on bond payments.
• Xiaomi added over 10% after it confirmed it will start selling electric vehicles later this month.
• The HK BioTech sector rallied, with some focus on a price hike by Lanzhou Foci.
• Elsewhere, Baijiu distillers rallied on speculation re: price hikes.
• Net buying of mainland shares via the HK-China Stock Connect schemes moderated on Tuesday (CNY4.2bn).