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Monday’s Recovery In Risk & SOE News Helps Chinese Benchmarks Higher

CHINA STOCKS

Chinese equities looked to the positive lead from the U.S. benchmarks, after U.S. efforts to mitigate tensions in the wider Middle East region and a lack of weekend intensification in the Israeli-Hamas conflict helped the broader risk dynamic on Monday.

  • That allowed the benchmark mainland CSI 300 to add 0.4% on Tuesday, while Hong Kong’s Hang Seng added 0.8%.
  • More granularly, SOEs benefitted from ten more names in the space disclosing share buybacks or increased state exposure plans on Monday,
  • Conversely, names linked to weight loss drugs struggled after one company apologised for misleading investors re: the related treatments.
  • HK-China Stock Connect flows were still tilted towards net selling of mainland equities (albeit at a more tepid pace of CNY3.1bn today).
  • Q3 GDP and monthly economic activity data headline the Chinese data docket on Wednesday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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