Benchmarks Little Changed, NPC Eyed

The CSI added 0.1% on Monday, while the Hang Seng was little changed. Both benchmarks traded either side of unchanged to start the week.

• Immediate focus falls on the NPC, with China’s ’24 economic targets due to be released on Tuesday (GDP growth target expected to be held steady at around 5%) and any policy stimulus eyed.
• While regulatory support has become more forceful after the appointment of a new CSRC Chairman, markets continue to look for deeper economic and equity market-specific measures.
• That could make for volatile trade in the coming sessions.
• Local news outlets covered brokerage comments pointing to upside potential for A shares.
• There were also regulatory comments pointing to the need to clear “hidden obstacles” that are preventing capital flow into equity markets.
• Property sub-indices faltered on the back of familiar headwinds, although HK’s Midland Holdings benefitted from HK weekend property sales figures.
• Computing names rallied on a policy drive focused on improving network efficiency,
• EV makers struggled after a price cut by one name.
• A couple of HK listings benefitted from inclusion in southbound Stock Connect trading.
• After hours we received news that Chinese exchanges will require enhanced risk management from institutional investors. The exchanges will also hasten adjustments re: quant trading regulations.
• HK-China Stock Connect schemes generated CNY7.1bn of net mainland outflows on Monday, the steepest rate of daily net selling seen since mid-January.