Another Uptick

The post-LNY rally extends, with the CSI 300 adding 0.9% and the Hang Seng finishing 1.5% better off.

• Broader indices continue to draw support from already deployed equity market-specific support, as well speculation surrounding further potential action e.g. local wires pointing to impending regulatory restrictions re: quant fund activity.
• The well-documented change at the very top of the CSRC has helped to alter perceptions, at least in the immediate term, with a heavier hand deployed by the regulator in the time since that switch took place.
• News of deposit rate cuts at smaller Chinese banks was another positive for wider sentiment, as were reports of swelling stock buyback plans.
• The CSI 300 property sub-index struggled after benefiting from the 5-Year LPR cut and expedited property development whitelisting earlier in the week.
• Positive feed through from Nvidia earnings was also felt in related names.
• Pockets of sector specific news flow provided some support e.g. coal industry news.
• Northbound HK-China Stock Connect net inflows moderated vs. Wednesday’s multi-month high, but still ran at a healthy CNY3.7bn.