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HK Outperforms

CHINA STOCKS

Thursday saw the CSI 300 shed 0.1% while the Hang Seng added 1.9%.

  • Tencent earnings and expectations surrounding Meituan’s quarterly results helped HK outperform.
  • Strong revenue guidance from U.S. tech power Micron also supported the tech sector.
  • Elsewhere, the property sector rallied on news that troubled developer Vanke had secured a 14-year loan to help refinance debt. This is seen as an incremental positive in the firm’s fight against default.
  • Gold miners rallied post-Fed alongside spot prices of the precious metal.
  • XPeng struggled on reports of an ADR sale by an Alibaba unit.
  • International flow seemed to contribute to the underperformance for the mainland, with the HK-China Stock Connect link generating ~CNY6bn of net sales of mainland shares.
  • Continued worry re: U.S. action against Chinese companies also weighed.
  • Speculation surrounding further policy easing remain evident, while PBoC Deputy Governor Xuan reaffirmed recent messenger from the Governor re: room for RRR cuts.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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