CSI 300 Shed 1%

The benchmark CSI 300 shed 1% on Wednesday, while the Hang Seng was a little more resolute, finishing flat.

• A modest, negative lead out of the U.S. and continued, well-documented economic worry/related sentiment were cited as sources of pressure.
• From a top-down perspective RTRS sources noted that suggestions for China’s ’24 annual GDP growth target will lie somewhere between 4.5-5.5%, with the bulk of the sources cited looking to promote an unchanged “around 5%” goal.
• The piece also noted that the sources “believe that more fiscal stimulus will be needed to achieve these targets, as this year was supported by positive pandemic-related base effects. The target may be agreed in December but is unlikely to be announced until March.”
• That doesn’t add much to the already present narrative, although apparent background/outside considerations of a 4.5% target may be considered a negative.
• Police in Chengdu have cracked down on the spread of false information online re: equities, with policymakers looking to revive sentiment surrounding the troubled equity market.
• It wasn’t all negative, Baidu benefitted from better-than-expected earnings.
• Troubled property developer Sunac advanced on one of its units attaining funding from a state-backed asset management company.
• International participants were sellers of mainland equities via the HK-China Stock Connect schemes, offloading a net CNY3.5bn of stocks via those mechanisms.