A Little Lower On Friday, Trimming Weekly Gains

MNI (London) - The CSI 300 and Hang Seng struggled during the final session of the week, with the CSI 300 shedding 0.3% and the Hang Seng losing 1.6%.

• While Friday trade broke the run of 3 consecutive daily moves higher in both indices, the CSI 300 still finished 2.0% higher on the week, while the Hang Seng added 4.6% over that horizon (the rallies were larger when marked against this week’s lows).
• Most pointed to the lack of delivery re: the touted stock support scheme as a negative on Friday, while familiar discussions surrounding the need for further stimulus owing to economic headwinds and depleted confidence continue to do the rounds, despite the latest PBoC RRR cut.
• WuXi struggled on the back of news that some U.S. lawmakers want to ban the company from operating in the U.S. owing to CCP ties. This was despite news that U.S. national security adviser Sullivan is flying to Thailand meet with Chinese Foreign Minister Wang Yi. Those discussions are set to cover the Middle East tension and a range of other issues,
• ACM Research moved lower on the back of a private placement plan.
• It wasn’t all doom and gloom.
• Property sub-indices benefitted from policymakers outlining the latest tools designed to promote credit access for the troubled sector.
• Gaming names benefitted from the latest batch of approvals in that sector.
• Some earnings-related upticks were also seen.
• Finally, CNOOC ticked higher on the back of firmer-than-target annual oil production in ’23. Yesterday’s rally in crude oil futures would have provided further support for the name.
• HK-China Stocks Connect links generated a modest CNY1.5bn of net inflows for mainland shares on the day. This represented the fourth day of net inflows via those channels this week, resulting in CNY12.1bn of net inflows for the week.