Light Losses Lodged At Index Level, Property Developers Outperform

The benchmark CSI 300 unwound the modest early uptick, closing 0.5% lower on Wednesday. The early uptick was likely linked to stimulus-based hope (based on yesterday’s report surrounding policymaker requests re: deposit rate cuts at the country’s major banks) and the potential for at least some thawing of Sino-U.S. tensions after BBG source reports suggested that “U.S. Secretary of State Antony Blinken plans to visit China in the coming weeks for talks with top officials, possibly including President Xi Jinping.”

• A much narrower than expected trade surplus print did little for wider sentiment, even as imports provided a shallower than expected Y/Y fall (in USD terms).
• We highlight that property stimulus speculation remains a focal point in the local press (along with one outlet pointing to the need for patience when it comes to a property market recovery), with the property developer sector lodging gains in equity trade, even as the broader benchmark index slid.
• Foreign investors lodged light net buying of mainland equities via the Hong Kong Stock Connect schemes on Wednesday (CNY2.51bn), likely on the back of the latest stimulus hopes.