Losses Pared Into The Weekend

The CSI 300 pared early losses to finish at essentially unchanged levels on Friday, after yet another fresh YtD low was seen in the index.

• Confirmation of “candid” discussions between the Chinese & U.S. trade ministers did little to soothe sentiment in morning trade, with continued unease re: the outlook for the Chinese economy and geopolitical worries noted.
• A bounce in the early ’23 darling SOE sector was a key proponent of the afternoon bid in mainland equities.
• Elsewhere, reports pointing to some government focus on support for the waterway system generated a bid for the relevant firms.
• In the background RTRS ran an article (see here) which noted that “the trademark Chinese patriotism is back at play in markets. As Japan and the United States place fresh curbs on Chinese technology firms, local investors are scooping up shares of those firms and state companies, and reaping handsome rewards.” The article covers various comments from brokerage houses touching on the matter.
• Stock Connect links were closed on Friday owing to a holiday in Hong Kong.