USD/CNH Back Above 6.9000, Northbound Stock Flows Moderate

USD/CNH is sitting just off session highs, last near 6.9000. Highs for the session sit around the 6.9025/30 region. CNH isn't receiving much benefit from firmer yen levels (back sub 133.00), which appeared to be a trend earlier in the session.

• Onshore equities are tracking lower, but losses are under 1% at this stage. Northbound stock connect flows were negative earlier in the session but have now turned positive, albeit below the pace seen in the first 3 sessions of the week.
• Headlines crossed earlier around China issuing a White Paper on enforcing the rule of law in cyberspace management. Elsewhere, the US authorities are asking China owners of Tiktok to disinvest their stake in the company.
• Caixin also reported that the authorities have told market makers to stabilize the bond market, narrow bid-offer spreads and boost volumes.
• On the data front, Feb house prices rose 0.3%, for the first gain in 18 months. There was a clear pick up in house prices (m/m) for new and existing homes. Further improvements in housing sentiment will be needed to boost broader confidence around household spending in 2023.