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Northbound Flow Momentum Softening

CHINA STOCKS

China's CSI 300 index was down 1.67% at the break. If maintained this would be the steepest fall since the end of October last year, although we have to see how sentiment unfolds post the break. This is seeing some northbound outflows via the stock connect, see the chart below. At this stage we have seen close to 6.3bn yuan in outflows. The last outflow day was recorded on the first trading day of the year, although in recent sessions, while flows have remained positive, momentum has been slowing. January saw a bumper of 141bn yuan of northbound flows on the re-opening theme.

Fig 1: China Stock Connect Northbound Flow Trends


Source: MNI - Market News/Bloomberg

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