Bucking The Wider Trend On Thursday

The CSI 300 managed to buck the broader trend on Thursday, lodging gains (~0.9%) on the back of firmer than expected Chinese Caixin services PMI data, along with increased focused surrounding the potential for a relatively imminent RRR cut from the PBoC and state media flagging the need for residents to boost income via allocating capital to equity funds. Brokerage firms fared well on the above headline mix.

• Elsewhere, state-owned media ran analyst views outlining the potential for an increase in LGFV debt swaps.
• There wasn’t much participation (in net terms) from abroad, with a very modest CNY0.5bn of purchases lodged via the HK-China Stock Connect schemes, although the bias in flows via those mechanisms has been heavily tilted to net purchases over the last 10 days, given the Chinese government’s economic support plans.
• Still, the benchmark indices remain off their recent stimulus hope-induced bests given the lack of clarity surrounding some of the support measures.