re: pressure on Chinese stocks: Broader.......>

CHINA: re: pressure on Chinese stocks: Broader global fallout on the back of

Coronavirus yesterday could be a trigger, but all sorts of questions there given

lower death count domestically today. Could markets have not liked the WHO's

assessment/potentially overoptimistic tone?

- More vol for Chinext, but it is NASDAQ-esque (tech dominated)

- Monday's outperformance likely driven by speculation re: deeper PBoC easing.

The potential is there, but state owned press seemingly trying to pull back on

deposit rate cut ideas a little (see press pickup) after recent comments from

certain PBoC members. "The PBOC should be cautious in lowering the benchmark for

deposit interest rates as any cuts would change prudential MonPol," - Sec Times.

- Also worth noting there has been particularly strong underlying volume over

the 4 previous sessions, and relative outperformance in China yesterday (despite

broader regional pressure stemming from Coronavirus spread) after the massive

gap closing seen post-LNY. We noted after hours Monday: "turnover of Chinese

stock markets exceeded CNY1tn for the 4th consecutive trading day on Monday. Nov

2015 was the last time when such heated trading was recorded" (per state media).