Modest Upticks On Wednesday

Benchmarks nudged higher on Wednesday, with the CSI 300 +0.2% and the Hang Seng +0.8%.

• That meant the former ticked away from the multi-year intraday lows registered early Wednesday, while the latter has got nowhere near challenging its ’22 base.
• Note that the Shanghai Composite index has moved back towards its long run uptrend line in recent weeks, although hasn’t threatened the latest test of the well-defined (multi-decade) technical support marker.
• State-backed media outlets ran comments from analysts pointing to the potential for a mild bull market for mainland equities in ’24.
• Elsewhere, the NDRC noted that China has scope for macro policy adjustments to support the economy.
• Both Fitch & S&P confirmed that there were no changes to their sovereign credit ratings/outlooks for China after Moody’s moved their outlook for China to negative on Tuesday. Policymaker displeasure re: Moody’s move was seen.
• Lenovo moved higher on a target price lift at a major brokerage.
• BYD benefited from its Chairman tabling a proposed equity buyback plan.
• Lithium and EV battery-linked names benefitted from expectations re: a lift in demand and prices.
• Sands China gained as the company noted that its parent company plans to increase its stake in the name.
• A share buyback plan from WuXi provided a fresh bid for the name, adding to the recent guidance-induced rally.
• Offshore investors registered net buying of mainland equities via the HK-China Stock Connect schemes (CNY2.3bn), breaking a run of 3 consecutive days of net sales.