China
UK / 
EU
Hong KongMarket Outlook
In April, CSI 300 rose by 1.1% and CSI 500 plunged by -4.2% respectively, while Hang Seng Index rose by 2.3%. The China onshore equity market saw large northbound and ETF outflows.
19Q1 real GDP growth was better than expected at 6.4% oya. High frequency monthly data for March points to upside surprise, driven by unexpected surge in March exports. Industrial production accelerated to 8.5% oya, along with solid FAI that largely driven by real estate FAI. Industrial profit rebounded in March, rising 13.9% oya. TSF growth further picked up to 10.7%, mainly contributed by SME lending and bond issuance. Retail sales were stronger than expected and auto sales appear to recover vs. 4Q18. Official manufacturing PMI stood at 50.1 in April, lower than the previous month's 50.5 and the consensus' 50.5.
Market might still present structural opportunities while digesting policy fine-tuning. We believe overall earnings growth will pick up in late 2Q and earnings estimates revision momentum will continue improving.
Hong Kong ETPs Market
The HK ETPs market recognized net outflow in April. The major outflows come from the major ETFs tracking MSCI AC Asia ex Japan Index. RQFII/A-share ETFs recorded net outflow of about USD 442 million, mainly driven by the two ETFs tracking FTSE A50 Index. Fixed-income/commodity ETPs recorded slight inflow of around USD 8 million, mainly coming from an ETF tracking Markit iBoxx ABF Pan Asia Index. L&I products also recorded a quite strong inflow of about USD 32 million.*
Overseas RQFII/A-share ETPs
Major offshore RQFII/A-share ETPs record significant outflows in April. The outflows were mainly coming from ETFs tracking MSCI China All Shares index and FTSE China A50 Index.
*Data is as of 30th April 2019 from Bloomberg
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