Property & Tech Sectors Lead Rally

The CSI 300 finished +1.3%, while the Hang Seng added +1.4%.

• The property sector benefitted from Hong Kong’s weekend property transaction figures and news that China Vanke had deposited cash to repay some debt obligations.
• RTRS sources had already suggested that “China has asked banks to enhance financing support for state-backed China Vanke and called on creditors to consider private debt maturity extension.”
• Solar names rallied on speculation surrounding a potential sector-specific move from policymakers.
• That allowed tech sub-indices to move higher.
• Local reports re: boosting financing to various areas of the tech sector also factored in.
• Several brokerage recommendations generated double digit gains in the related names.
• ZTE & Legend Holdings struggled on earnings matters.
• HK-China Stock Connect links generated CNY10.3bn of net inflows for the mainland.
• The weekend saw the Chair of HK’s Securities & Futures Commission call for an expansion of the Stock Connect schemes.
• Firmer than expected Chinese CPI data and a limited uptick in CGB yields had little impact on equities.
• Broader expectations look for continued policy easing in China.