Supported By Reports Flagging Change In Capital Flow Approach

A positive end to the week for Chinese equities, with the benchmark CSI 300 adding 1.8%, moving away from ‘23 lows in the process.

• A BBG source report pointing to “China considering relaxing the rules that cap foreign ownership in domestic publicly traded firms” provided an after the fact justification for the rally that had been said ahead of the story breaking.
• Nonetheless, the index hit highest levels of the day around the time that the story crossed, closing a touch shy of session bests.
• That wasn’t the only headline of note on the capital flow front, with Beijing and Shanghai making efforts to allow a freer flow re: foreign investor funds.
• Elsewhere, further efforts to boost the development of the private economy were noted, following on from Premier Li’s comments on the same matter.
• In HK, some noted the hold of technical support in the HSI and the HSCEI.
• On the single stock front, Alibaba benefitted from a report suggesting that its logistics arm aims to file for HK IPO as soon as next week.
• Flow wise, Friday saw the largest round of net inflows since July for mainland equities via the HK-China Stock Connect links (CNY7.5bn).