[MARKET UPDATE] Chinese stocks rebound shortly after the Shanghai Composite fell to fresh multi-year lows under 2,700 - with some highlighting increased capital flows from Hong Kong via Stock Connect
Analysis details (06:39)
- Chinese stocks traded with losses overnight and extended the downside until around 06:23GMT, in which the Shanghai Composite fell to a 2,666.33 trough (vs 2,791.68 overnight high) – to levels last seen in early 2019.
- Chinese markets then caught a sudden bid in which the mainland index surged to 2,754.61 by 06:39GMT.
- Some observers highlighted strong capital flows from Hong Kong to Shanghai and Shenzhen via the Stock Connect after the Shanghai Comp broke below 2,700.
- Chinese efforts to prop up the market cannot be ruled out.
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06:54GMT - Bloomberg TV reports "CSI300 pares loss sharply, Northbound flows turn positive." -
07:00GMT - Shanghai Comp closes -1.5% at 2,730.15.
02 Feb 2024 - 06:39- Important- Source: Newsquawk
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