GS China Midday22 October 2026 | 11:47 AM China Standard Time

Risk off dominated China equities today with major indices all closed much lower. Index and institution heavy weights are being sold the most in recent correction, likely due to position adjustments from institutions. 3Q report from mutual fund houses is due by end of this month, we shall get more info on positioning data then. NT hasn't really stepped in yet, recently their operation started toward close and in the past a few days, the efforts finally concentrated in ChiNext and STAR 50, while the aggregate notional is still less than what we have seen during July Sell off.

FLOWS: Our desk flow is 1.2x better to sell. We are buying Healthcare, Semi, Industrial, vs. selling battery, PBC. Two ways of CPO, better to buy.

Sector-wise, CPO got soldoff the most without new negative headlines, followed by other Al hardware. On the bright side, Robotic theme remain resilient positive comments from Optimus.

High-divy names aiso saw some inflow as a risk shelter.