Daily Brief Financials: Hong Kong Hang Seng Index, Capital One Financial, Times China, China Jinmao Holdings, CNY and more

• HSI has been our top short bet where we locked in some short gains at 18,100/300 and now see this bounce as an opportunity to re set the HSI short.
• Underlying weakness in China A shares sets the tone for HK.
• Trend and price resistance at 19,300/500 stand out as a key turn zone with a little help from an SPX give back sequence.

• Credit quality risks are rising in US commercial real estate (CRE) and specifically in office property; furthermore, the prospect of increasing US Treasury bond issuance may heighten T-bond volatility
• We screen for US banks that have strong capital ratios, that can deliver premium returns and can confront the rising credit quality challenges, especially in CRE
• We maintain buys on M&T Bank and Western Alliance, adding Capital One with its healthy capital ratios and low office exposure; we recommend profit taking on First Horizon

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Times China’s ESG as “Adequate”, in line with its “Adequate” Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Hongqiao
• China Jinmao Holdings
• Greentown China
• Times China

• The industrial sector is exhibiting signs of a prolonged slowdown, similar to Real Estate and Household trends.
• This Note is the third in a series on China’s econChina’scovery; we update key charts and add charts relevant to the Industrial sector.
• Qingdao City on Friday reduced the deposit requirement for purchasing homes, following a trend set by several other cities.