Mainland Struggles, HK Outperforms

The CSI 300 shed 0.2% to start the week, with well-documented areas of pessimism cited.

• The aforementioned reports of a potential end to the Chinese purchase freeze surrounding Boeing provided some background relief early in the mainland session.
• Meanwhile, Hong Kong’s Hang Seng outperformed, adding 1.3% on the back of a late session rally. Retailers Alibaba & JD.com benefitted from (discount-aided) sales numbers surrounding the Singles’ Day event, which topped headline expectations.
• Elsewhere, monthly sales dynamics aided TSMC in Taipei trade.
• When it comes to broader brokerage moves, note that Goldman Sachs lowered “offshore China to Marketweight, but stay Overweight on China A shares where the strategic investment case looks more compelling to express our alpha vs. beta bias.”
• Mixed monthly Chinese money supply/credit data has been seen in the last few minutes, with lending and credit deployment slowing in Oct vs. Sep.
• Flow-wise, mainland equities were subjected to a fifth consecutive day of net outflows via the HK-China Stock Connect links, although the net sales witnessed on Monday were modest at ~CNY1.4bn.
• Monthly economic activity data, PBoC MLF operations and Wednesday’s Biden-Xi summit present the China-centric points of interest in the coming days.