Tech Leads Mainland Lower, Outflows Seen Again

Mainland Chinese equities struggled on Wednesday, with the CSI 300 0.6% lower at the bell.

• The Chinext outpaced losses in the benchmark CSI, shedding over 1.1% and registering its lowest close since ’20.
• Onshore tech names struggled in the wake of the lead from Wall St., post-Apple product launch.
• Offshore tech heavy indices, namely the Hang Seng & Hang Seng Tech Index, were a little more resilient, although still lost 0.1% and 0.6%, respectively.
• Continued speculation surrounding the potential for another RRR cut in Q423 did little to support the space.
• Meanwhile, questions surrounding the longevity of the bounce in property market activity post-mortgage easing steps remain evident.
• Still, property sub-indices lodged gains after Country Garden attained a maturity extension for another onshore bond.
• Mainland equities were subjected to outflows via the HK-China Stock Connect schemes (6.6bn).