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*** Just worth flagging that the.......>

CHINA STOCKS
CHINA STOCKS: *** Just worth flagging that the Shanghai Composite fell 2.8% come
the close, finishing below the psychological 3,000 level for the first time
since Christmas Day as worry surrounding the Coronavirus and the quarantine
efforts surrounding Wuhan took hold.
- N.B. As highlighted previously, this was likely exacerbated by liquidity
worries ahead of the Lunar New Year holidays, with mainland Chinese markets now
shut for a full week. Chinese markets are of course famed for momentum driven
moves and a high degree of retail investor participation.
- What is even more interesting is that the northbound HK Stock Connect flows
registered a record net selling level (outflows) of mainland stocks (based on
our calculations). N.B. this is under the current cumulative construction of
Shanghai & Shenzhen stock connects (which has been in play since late 2016), the
Hong Kong Connect witnessed sharper outflows back in the summer of 2015
(pre-Shenzhen Connect existence).
- Chart: https://emedia.marketnews.com/NB_flows.PNG
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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