China To Shift To Reporting Equity Flows Quarterly

MNI (Australia) China hinted earlier in the year of a move to reduce reporting of daily flows via stock connect.

• Stock and Bond Connect via Hong Kong was designed to support access to China’s domestic markets by non Chinese investors.
• Authorities have announced they will no longer be publishing daily flows from mid August.
• This will remove the ability to calculate daily net flows, rather it will only report gross turnover. Northbound inflow data will only be reported Quarterly.
• The changes are aimed at arresting volatility and supporting domestic demand for stocks as Chinese local investors recover from a serious downturn in the economy and a challenging housing market.
• This comes at a time when India announces taxes (as part of the new budget) on short term trading activities for stocks.
• These changes come at a time when the potential for increased protectionism is high, depending on the outcome of the US election.