USD/CNH Close To 7.3300, CNY NEER Higher Though

USD/CNH continued to recover post the Asia close on Wednesday, although couldn't meaningfully breach the 7.3300 handle in the NY session. We currently track near 7.3275, with CNH close to flat for Wednesday's session. USD/CNY finished at 7.3165, while the NEER (J.P. Morgan index) gained 0.16% to push the index to 123.825.

• We remain within broader ranges from a USD/CNH standpoint. Wednesday's post Asia close recovery was in line with a firmer US yield backdrop, with US-CH yield differentials up from recent lows.
• A number of sell-side analysts upgraded their China GDP view post yesterday's positive surprises and see China being able to meet this year's growth target (5%). Still there was a degree of cautiousness around the extent of the recovery.
• The equity backdrop remained a headwind. The Golden Dragon index lost 2.2% in Wednesday US trade, amid broad equity losses. To recap, the CSI 300 fell 0.80% yesterday to close at 3610.60. This is fresh lows back to November last year. Modest Northbound stock connect outflows continued.
• The CSI 300 real estate sub index fell to fresh lows back to late 2014. Yesterday's property related data showed some improvement in m/m terms, but y/y momentum remains comfortably negative for the most part.
  Note we get September new home price data today.