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Chinese equities under pressure to end the week

CHINA STOCKS
  • Chinese equities are under pressure at the end of the week, with teh CSI300 down -3.4% on the day (with losses were around -1% on the day around 5:50GMT and have accellerated since then.
  • Our Asia team noted earlier that "Investors are still cautious around recent policy announcements about supporting the markets, while China Evergrande ordered liquidation weighs of the minds of investors."
  • On top of this, Bloomberg is quoting Shen Meng, director at investment bank Chanson & Co, as saying “There’s a strong tendency among investors to lower their positions ahead of Spring Festival holiday.”
  • Part of the move is also likely to be book squaring ahead of the weekend.

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