Mainland Benchmarks Incrementally Lower, While HK Benchmarks Nudge Higher

MNI (London) - Benchmark equity indices on the mainland traded either side of flat on Thursday, with the CSI 300 ultimately ending 0.1% lower.

• EV names struggled after the EU opened an investigation into Chinese subsides surrounding the sector. The nationalist Global Times newspaper has suggested that China may enact countermeasures.
• Elsewhere, the mainland property index traded heavily, with Country Garden approaching another voting deadline re: bond payment matters.
• Energy names benefitted from sentiment surrounding the oil market.
• The Hang Seng ended ~0.2% higher, after bears managed to force a more than full reversal of the early uptick, before some poise was restored.
• Xiaomi firmed after a cross-licensing deal with Huawei, while Yum China moved higher on revenue guidance.
• On the flow side, it is worth noting that reports have flagged that China-focused equity ETFs saw record net inflows of U$20.6bn in August, despite the surge in selling via the northbound Stock Connect channels.
• State-backed media noted that some A-share investors regard the northbound Stock Connect flows as a bellwether re: the stock market trend, but a commentary piece cautioned that those flows shouldn’t represent the sole factor in investment decisions.
• Thursday saw another round of daily net outflows via those channels (CNY6.4bn).