Key Chinese stock indices showed solid gains on Wednesday, October 13, drawing support from strong foreign trade data. Notably, persistent risks in the country’s real estate sector as well as a slight downgrade of the IMF’s Chinese GDP outlook for 2021 (by 0.1 pp to 8.0%) were put on the back burner. In particular, China’s trade surplus widened to USD 66.76 bn in September, the highest level since December 2020, as exports soared 28.1% y-o-y to a new record of U
SD 305.74 bn, while imports rose 17.6% y-o-y.
The Stock Exchange of Hong Kong canceled securities trading as strong winds and rain from typhoon Kompasu lashed the city.
Recapping the benchmarks, the CSI 300 added 1.15% to 4,940.1, and the ChiNext advanced 2.25% to 3,208.7.
In Shanghai, the session’s leaderboard included alcohol maker Sichuan Swellfun (+10.0%), automotive manufacturer Anhui Jianghuai Automobile (+10.0%), as well as China Northern Rare Earth Group (+6.4%) and Kangmei Pharmaceutical (+5.1%).
Trading to the downside were coal miners, which extended a pullback after hitting record highs previously amid a spike in coal prices. As a result, Pingdingshan Tianan Coal Mining, Shanghai Datun Energy Resources and China Coal Energy slid 10.0%, 9.9% and 9.8%, respectively.
In technical terms, the CSI 300 index has bounced off the 50-day moving average within a triangle. We expect price action to ascend further towards the upper bound of the current formation near 5,000.
On the FX market, by 8:00 GMT the USD/CNY pair edged down 0.03% to 6.447, USD/CNH weakened 0.07% to 6.449, while USD/HKD was little changed at 7.781.
The 10-year China government bond yield widened 2 bps to 2.98%.