CSI 300 Little Changed, Flows & Stimulus Continue To Be Eyed

The CSI 300 was little changed on Wednesday.

• There hasn’t been anything in the way of meaningful support measures announced since news wires outlined the likelihood of mortgage and deposit rate cuts yesterday.
• Financials struggled in the wake of the above news.
• State-backed outlets flagged comments from analysts outlining the potential for a continued rebound in Chinese equities, owing to the deluge of support measures announced in recent days.
• The HK-China Stock Connect schemes saw another round of net outflows for mainland equities, with international investors selling a net CNY2.5bn via those mechanisms on Wednesday.
• Still, it isn’t all outflows for the space. BBG have noted that “China’s largest exchange-traded fund focused on stocks is poised to see its biggest monthly inflow on record, a sign that some investors are buying the dip and betting on a turnaround amid enhanced policy support. Huatai-Pinebridge CSI 300 ETF has attracted CNY32bn of funds so far in August, the most since the product was launched in 2012.”