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US TSY OPTIONS

BLOCK -- Adding to 5Y Puts as a Spd

EUROZONE ISSUANCE

EGB Supply For W/C Sep 20, 2021

USD

Sees broader base buying, led by risk

US TSY OPTIONS

BLOCK, Oct 5Y Puts

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Monday saw offshore investors react negatively to the increased regulatory oversight evident in several sectors, with the Hong King-China northbound Stock Connect flows seeing the highest level of net selling witnessed since July last year (a reminder that July '20 saw 2 the largest rounds of daily net sales on record, going back to 2016), hitting CNY12.802bn.

  • The state-run Securities Times has published a piece (citing analysts) flagging the "short-term" impact of Monday's headwinds for equities, pointing to expectations for the long-term uptrend to continue, underpinned by the Chinese economy. The analysts speaking with the Times noted that Monday's fall in Chinese equities was based on policy changes, valuations and liquidity. They also highlighted a focus on the upcoming Politburo meeting, which is expected to take place around the end of July.

Fig. 1: Net Hong Kong-China Northbound Stock Connect Flows (CNYbn)

Source: MNI - Market News/Bloomberg