Mainland Outperforms, With CSI 300 Bouncing From Fresh ’23 Lows

MNI (London) - Mainland equities outperformed global peers on Monday, with the CSI 300 adding 0.5%, rebounding from fresh YtD lows (sub-3,700) lodged early in the session.

• Meanwhile, the HSI struggled after Friday’s weakness on Wall. St., which saw tech benchmarks lead losses.
• State-run media outlets ran comments from economists pointing to the potential for further macro policy support along with expectations for an economic rebound in Q423.
• A successful product launch for liquor giant Kweichow Moutai allowed the name to move higher on the day.
• Evergrande remains in the headlines, after some staff at the company’s wealth management unit were arrested. Initial related losses in company H shares were pared.
• Finally, troubled developer Country Garden faces its latest tests today, an initial deadline re: $ bond interest payments and creditor voting re: onshore bond payment extension requests.
• Property developers struggled in general.
• On the flow side, the Securities Daily noted that the increased inclusion of A-shares in FTSE global indices is expected to bring a net inflow of over CNY7.3bn in passive tracking funds to mainland shares.
• The day also saw modest net inflows for mainland shares via the HK-China Stock Connect (~2.8bn), breaking a 4-day streak of outflows.