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HK Rallies On Tech Earnings Exp, After-Market Comments Point To Deeper PBoC Easing

CHINA STOCKS

CSI 300 -0.4% on Wednesday, trading either side of unchanged, while the Hang Seng was +1.7%.

  • The HSCEI added 2%, with tech hope surrounding earnings underpinning ahead of JD.com results.
  • After A shares closed official comments pointed to a continued tightening of equity market regulations, as the new CSRC Chair continues to provide a tighter regulatory grip.
  • The same press conference also saw PBoC Governor Pan point to room for further monetary easing, allowing CGB yields to move to fresh cycle lows.
  • There were already broad expectations re: further policy easing, but the move in yields could provide fresh tailwinds for stocks early on Thursday.
  • EV maker Nio struggled on the back of softer than expected profitability in Q4 and warnings re: increased competition.
  • Northbound Stock Connect channels saw CNY1.5bn of net outflows from the mainland.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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