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Mainland Outperforms HK, Property Names Struggle.

CHINA STOCKS

The CSI 300 added 0.9% on Monday, HK lagged, adding 0.1%.

  • Mainland news outlets covered positive views re: the outlook for Chinese equities.
  • Elsewhere, PBoC policy speculation re: further PBoC easing remained evident.
  • Mixed macro fundamental inputs after Friday’s monthly credit data was mixed at best, while today’s monthly economic activity data was positive on net.
  • Friday’s after-market CSRC opinions re: promoting the development of top-tier investment banks allowed the sector to move higher.
  • Semiconductors benefitted from government guidance for local EV makers to buy domestic chips.
  • Similarly, computing firms rallied on government focus re: expedited development of digital infrastructure.
  • CATL rallied post-earnings.
  • Wuxi Lead Intelligent rallied on news of a strategic cooperation agreement with American Battery Factory.
  • XPeng rallied on a RTRS sources report suggesting that it will launch a cheaper brand of EVs to combat competition.
  • Longfor struggled on the back of disappointing property sales.
  • Wider property developers struggled on the back of soft HK weekend sales data.
  • HK-China Stock Connect links generated CNY2.8bn of net mainland inflows. A seventh consecutive day of net inflows.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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