Sentiment Remains Downbeat

MNI (London) - Benchmark China & Hong Kong indices were lower again on Wednesday, with the CSI 300 shedding 0.9% and the Hang Seng finishing 1.4% worse off.

• The CSI 300 lodged its lowest close since early ’19, although early ’24 intraday lows were not breached, with the index holding above 3,200.
• Sentiment remains downbeat in the wake of the HK liquidation order re: China Evergrande, while uninspiring official PMI releases (which generally matched wider expectations) did little for equities.
• Participants remain hungry for fresh economic and equity-specific stimulus/support.
• Negative sentiment surrounding big tech earnings out of the U.S. also factored into price action.
• Lithium names struggled as major players in the space issued worrying guidance surrounding the battery metal business and related profit warnings.
• Haitong Securities struggled post-earnings.
• Deeper than expected ’23 losses for China Eastern weighed on the name.
• Cathay Pacific benefitted from a positive brokerage move.
• L’Occitane firmed on the back of better-than-expected Q3 revenue.
• Modest net inflows for the mainland were once again seen across the HK-China Stock connect schemes (~CNY3.7bn).