China market took a pause today with indices a couple/dozens of bps below water. Style shifted back to the defensive side, banks, energy and appliances outperformed. The local consumption like Pudong Dev bank 600000 CH saw new ATH. The new consumption theme that had been outperforming during the past week got quickly sold off today, pets economy -3.9%, duty free lower too -1.6%.
Auto semi was once pretty strong during the day with the expectation of Xiaomi Yu 7 information release, but gains narrowed on later Lei Jun posted on social media that there won’t be price info and other debut today. That being said, still we have seen consistent inflow into auto related semi - Will semi 603501 the flagship stock. Management remains positive on the company's growth ahead more driven by ADAS / AD trend in China. BYD smart driving car sold more than 213k units in Apr (71% of total 480k passenger car sold domestically), adding to the total 480k+ in 4M, more doubling in pace every month.
CN flows on our pad: two ways, buyer in battery, vs. sellers in materials, smart phone chain. Fundamental pocket net buying, sizeable in auto semi but seller from other pockets in memory, etc.
Prime data shows that global HF sharp de - grossing in April, Gross allocation remained flat at 4.6%, near 5 - year low (4th percentile 5 - year). So far in May, Gross allocation is down 0.4% to 8.0% (33rd percentile 5 - year). Chinese equities have seen marginal to moderate buying for 4 consecutive weeks, but still remain net sold for the YTD period. A - shares dominated the net buying flows (70%) in the recent week, with relatively smaller contributions from ADRs (25%) and H - Shares (5%)
Prime 数据显示，全球对冲基金 4 月大幅减仓，总配置比例持平于 4.6%（接近五年低点，处于五年期第 4 百分位），而 5 月迄今小幅下降 0.4% 至 8.0%（五年期第 33 百分位）。中国股票已连续四周出现小幅至温和买盘，但年初至今仍呈现净卖出状态。近期一周的净买入流量主要由 A 股主导（占比 70%），ADR（25%）和 H 股（5%）贡献相对较小。
Over/Under weights vs. MXCN: Industrials (+7.7%), Materials (+7.2%), Health Care (+5.8%) are the most overweight, while Comm Svcs (-18.3%),
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