Indices Tick Lower On Wednesday, Property Sub-Indices Edge Higher

Chinese equities traded either side of unchanged on Wednesday, with the CSI 300 ultimately closing 0.2% lower, while HK’s Hang Seng shed 0.6% as benchmark indices came under pressure in the second half of trade.

• Ping An Insurance struggled after a RTRS sources report suggested that “Chinese authorities have asked Ping An Insurance Group to take a controlling stake in embattled Country, the nation's biggest private property developer.” The insurer denied the report, while some market participants/sector watchers suggested that such a takeover was unlikely. Still, both A- and H-shares for the name went out just off lows.
• Sub-indices covering the troubled property developer sector ticked higher in the wake of Cailian’s late Tuesday report pointing to a seminar held by the PBoC, financial and security regulators and the housing ministry. Various property developer executives (including some from Vanke, Poly, Longfor and Gemdale) were in attendance, per the report, with discussions seemingly centred on the sector’s liquidity situation and financing requirements,
• Xiaomi shares benefitted from expectations re: phone sales.
• Airlines seemingly benefited from the latest leg lower in crude oil futures, although energy producers struggled on the same news.
• International investors shed exposure to mainland equities via the HK-China Stock Connect links for a second consecutive day. They sold a net CNY3.7bn via those channels on Wednesday.