CSI 300 Higher But Within Yesterday’s Range, Tech Outperforms

The benchmark CSI 300 index finished 1% higher on Tuesday, recovering from an early, limited blip lower, but closing off best levels.

• The index failed to get anywhere near testing yesterday’s opening highs, but registered a second consecutive day of gains, recording back-to-back daily gains for the first time since early this month.
• The HSCEI got close to Monday’s best levels, but bulls didn’t manage to force a test/major break there.
• A commentary piece run by the Securities Times noted that the development potential of China’s capital market and effectiveness of policies to support the equity sphere shouldn’t be judged just on the short-term performance of stocks.
• Elsehwere, the CSJ ran comments from analysts pointing to the potential for a RRR in Q4, with an eye on the need to improve liquidity in financial markets. The PBoC’s focus will remain on ensuring “reasonably ample” liquidity.
• At the stock-specific level, EV maker BYD rallied on the back of its quarterly earnings report, which allowed the broader tech indices to outperform.
• Offshore investors registered marginal net sales of mainland equities via the HK-China Stock Connect links, recording the 16^th round of net outflows in the last 17 sessions.