China Daily Briefing

SCMP Business flags growing analyst skepticism about the effectiveness of China's market-support programs, with the concern that National Team buying absorbs supply without addressing the underlying earnings confidence problem. The CSI 300 needs RMB earnings revisions to stabilize — not just mechanical price support — and with Fintech at -4.78% and Education at -6.78% today, regulatory tail-risk is still being priced in sector by sector.

SCMP Business reports China hybrid car exports to the EU surged 200% as automakers exploit the tariff differential between pure EVs (hit by EU duties) and plug-in hybrids (initially lower tariff exposure). BYD's hybrid strategy is outperforming in this environment, which explains the EV/Mobility sector's +0.15% anomalous outperformance today. The risk is that Brussels closes the hybrid tariff window in H1 2027.

SCMP Business reports JPMorgan Asset Management is scaling its active ETF offering in China after its debut fund hit $300 million in assets on day one — a signal that institutional demand for manager-selected China exposure is real, even as passive-index flows stall. Active allocation allows managers to underweight the Fintech and Education sectors currently facing regulatory headwinds while overweighting the EV and consumer recovery plays.