The CSI 300 shed 0.5% on Monday, with property developer stocks struggling, even after Friday’s BBG sources piece that flagged the potential for impending support for the property sector.

• There wasn’t much in the way of meaningful weekend developments re: that matter, which, when coupled with some analysts suggesting that the touted measures may prove disappointing, as well as Friday’s meaningful pre-news rally in the space, resulted in some softening for the sector.
• Modest net outflows via the Hong Kong Connect Schemes will have also provided headwinds, as will continued Sino-U.S. tension.
• The Economic Daily tried to soothe worries, pointing to the need for “confidence, determination and patience” in light of the recent market volatility.
• Participants shrugged off firmer than expected Caixin Services PMI data. A reminder that the survey is geared towards the SME space, as opposed to the larger/SOE sphere. There has also been a clear split in the performance of the services and manufacturing sector in recent months, with Caixin noting that “service providers remained optimistic partly because the market environment improved in the post-Covid era. However, the measure of their expectations for future activity declined for the fourth straight month, and slipped below the historical average.”