Investors Remain On Sidelines Despite Market Friendly Reforms

Key News

Asian equities started the week off to a strong start except for Malaysia, which underperformed the region, and the Philippines, which was closed for National Heroes’ Day.

Chinese financial and tax authorities rolled out a host of investor-friendly policies for Mainland stocks, leading to a very strong open that faded over the course of the trading day. Both Mainland China and Hong Kong equity markets closed in the green. As we’ve noted in the past, the 3,200 level on the Shanghai Composite and the 2,000 level on the Shenzhen Composite are proverbial “lines in the sand” that have been breached, leading to a dial-up in supportive measures.