Onshore Financial Equities Remain Under Pressure Post PBoC Headlines

Headlines have crossed (BBG/RTRS) from the PBoC, which issued a notice on financial support for the private sector. The PBoC has vowed to boost bond issuance by private firms, and also support M&A's, IPOs of private sector firms. The headlines also stated banks will be encouraged to buy bonds issued by private firms.

• The central bank also stated it will encourage banks not to cut loans for private companies that are facing temporary difficulties. It also reiterated that it will reasonably meet private developers financing needs (RTRS).
• Onshore equities are still struggling, the CSI 300 off a little over 1%. Financials are down by 1.4%, so slightly underperforming. Financials ex banks are off by more, -1.65%. The HSI is down around 0.90% at the stage, slightly above session lows.
• These headlines may reinforce concerns from late last week around the potentially negative impact of “unprecedented” property support via unsecured loans to qualified lenders for banks received the most airtime.
• USD/CNH has ticked higher, last near 7.1560, still sub Friday session highs. AUD and NZD have given up earlier gains in the G10 FX space.