Weaker Again, No Sign Of "National Team" In HK Connect Flows

A quick note to flag that the earlier BBG source report re: the intervention of the Chinese "national team" suggested that "Chinese state-backed funds were said to intervene on Tuesday to alleviate declines in the stock market, a sign that the rout had gone too far for policy makers. The funds, known as China's "national team," stepped in to ensure stability during the government's key policy meeting in Beijing, according to people familiar with the matter. A Hong Kong-based trader, who declined to be identified discussing client business, said entities linked to mainland funds were actively buying shares through stock links with Hong Kong on Tuesday." There is nothing clearly observable to support the story in terms of the flow witnessed in the northbound leg of Hong Kong-China Stock Connect schemes, with a relatively paltry net CNY1.9bn of northbound inflows lodged as of typing. Perhaps that has some explanatory power re: the resumption of the move lower in Chinese equities.