Mainland Benchmark A Touch Higher, Hang Seng Struggles

The mainland benchmark CSI 300 added 0.2% come the close, while Hong Kong’s Hang Seng lost 1.0%.

• Earnings and property headwinds were cited as the key driver of the Hang Seng’s weakness once again. The CSI 300 property sub-index also struggled.
• On the earnings front, Meituan marginally beat on Q3 revenue and beat on adjusted net profit after the close. The name traded heavily in HK pre-earnings, shedding over 5% on the day.
• On the property side, PBoC Governor Pan played down the heavily discussed risks stemming from the sector and local government debt, while stressing that the economy will meet the ’23 GDP growth target, alongside expectations for a continued rebound in momentum re: economic activity.
• Note that the small cap BSE 50 struggled as the Beijing Stock Exchange stated that it was untrue that the exchange asked major shareholders not to reduce holdings, pushing back against source reports that had flagged such guidance.
• Related chipmakers continued to benefit on the back of President Xi’s touted visit to Shanghai tech firms and the Politburo’s comments re: tech innovation.
• Reports re: Huawei partnerships in the smart car sphere continued to filter into equity performance in the auto space.
• HK-China Stock Connect links saw ~CNY2.8bn of net inflows for mainland equities on Tuesday.