KRW: Holding Above 1400 As We Enter Holiday Period, HSBC Notes Domestic Outflows

China has transferred part of its state-owned capital to replenish the social security fund, and introduced tax exemption to support the transfer, Yicai.com reported. To avoid additional tax burden during the transfer process, the transferred state-owned equity and cash income will be exempted from value-added tax, corporate income tax and stamp duty, and the implementation date is retroactive to Apr 1, 2024 with taxes paid before to be refunded, according to a document by the Ministry of Finance Tuesday.

China's logistics prosperity index was 50.9% in August, up 0.4 percentage points from July, Securities Daily reported citing data by China Federation of Logistics & Purchasing. Total logistics business volume and new orders have grown rapidly, with the gradual implementation of policies to promote consumption, stabilise investment, and improve social wealth, the newspaper said citing Liu Yuhang, director of China Logistics Information Center. Companies’ expectations remain positive with the business activity expectation sub-index staying in the high prosperity range of above 55%, said Liu.

The net inflow of southbound funds, an important driver for the Hong Kong stock market rebound, has exceeded the HKD1 trillion-mark to set a historical high as of Sept 2 this year, Shanghai Securities News reported. This not only injected abundant liquidity into the market, but also changed the investment structure and pricing logic, the newspaper said. The proportion of daily trading volume of southbound funds in Hong Kong stocks has increased to about 35% from about 5% in the early days of the launch of the Stock Connect, the newspaper said citing data by Xiangcai Securities.