Most Benchmarks Firm, HSCEI Reverses Early '24 Losses

Most benchmarks firmed on Tuesday, with the CSI 300 +1.2% and the Hang Seng +0.5% at the close.

• The HSCEI has reversed its early ’24 losses.
• Discussions remain centred on the need for deeper policy and equity market-specific support, with focus on the upcoming Two Sessions meeting in Beijing.
• We highlight that the recent change in personnel at the top of the CSRC has altered perceptions and suggests that policymakers are serious about supporting the equity market.
• Offshore flows were supportive, with mainland seeing CNY12.2bn of net inflows via the HK-China Stock Connect scheme.
• Profits/guidance from the automaker sector promoted some outperformance for related names.
• AI-linked names surged on the back of a regulatory push for quicker development and more competitive companies in the sector.
• Samsonite rallied on the back of source reports suggesting a takeover of the company could be coming.