CSI 300 Lags Tech Bounce, Record Run Of Outflows Via HK Connect Schemes Halted

The benchmark CSI 300 lagged the rally in Chinese tech benchmarks, adding ~0.7%, with purer tech plays benefitting from feedthrough surrounding Nvidia’s earnings.

• Chinese corporate earnings were also touted as a provider of some of the upward impetus for the tech space.
• Chinese seafood stocks rallied late in the day, in the wake of the Chinese customs authority “comprehensively” suspending imports of Japanese aquatic products. The move came as a reaction to Japan’s release of treated wastewater from the Fukushima nuclear power plant.
• On the flow side, offshore investors broke the 13-day record run (based on data going back to ’16) of net daily outflows from mainland shares via the HK-China Stock Connect schemes.
• More broadly, worries re: the Chinese trust industry remain evident, while analyst speculation re: the potential for continued large scale PBoC reverse repo operations, at least through month-end, did the rounds via state-backed media outlets.
• Elsewhere, state-backed media flagged increased support for SOEs moving into emerging industries, while a notable uptick in new infrastructure investment was also touted by analysts.