Mainland Outperforms HK, Property Names Struggle.

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.