China, HK stocks slip as traders await stabilisation signs, policy measures

China’s blue-chip CSI 300 Index and the Shanghai Composite Index both end the session down 0.2 per cent. PHOTO: REUTERS

Published Tue, Sep 12, 2023 · 04:30 PM

CHINESE and Hong Kong stocks closed lower on Tuesday (Sep 12), despite recent data showing signs of stabilisation in the world’s second-largest economy, with traders awaiting more clues on recovery and policy measures.

China’s blue-chip CSI 300 Index and the Shanghai Composite Index both ended the session down 0.2 per cent.

Hong Kong’s Hang Seng Index dropped 0.4 per cent and the Hang Seng China Enterprises Index declined 0.6 per cent.

Data on Monday showed new bank lending in China nearly quadrupled in August from July, beating expectations. On Saturday, data showed easing deflation pressures amid signs of stabilisation in the economy.

“The continuing improvement in economic indicators would gradually repair negative investor sentiment,” said analysts at Sinolink Securities.

However, they said the market will remain in range-bound performance in the near term given the still weak economic and liquidity situation.

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Ting Lu, chief China economist at Nomura said the economy might face new headwinds and has yet to stabilise, and Beijing may need to introduce more aggressive easing measures to ensure a real recovery.

In mainland markets, shares in consumer discretionary and automobiles climbed 0.8 per cent and 0.7 per cent respectively, while real estate developers and semiconductor makers were down roughly 1 per cent each.

China’s largest private property developer Country Garden jumped nearly 4 per cent, after sources said the developer has won approval from its creditors to extend the repayments on six onshore bonds by three years.

Hong Kong: Stocks tumble 1.43% at Monday’s open

Beijing has taken a number of steps in recent weeks to restore investor confidence, from lowering transaction costs to restricting some top shareholders from selling stakes.

China eases rules for insurers buying stocks in support measure

Global funds are again in retreat on Tuesday (Sep 5) as a private survey show China’s services sector cooling.

Global funds slash China stock positions to lowest since October

The Hang Seng China Enterprises Index gained as much as 2.4 per cent, with property names China Resources Land and China Overseas Land & Investment leading the advance.

Chinese stocks in Hong Kong jump after more property easing

epa10811381 People walk on a pedestrian bridge with a screen showing stock exchange data, in Shanghai, China, 21 August 2023. Asian markets faced a setback on 21 August as China's reduction in lending rates proved to be smaller than anticipated. This extends Beijing's trend of providing stimulus measures that are more conservative than expected. The one-year loan prime rate (LPR) experienced a ten basis points reduction by the People's Bank of China, whereas the unchanged five-year rate, employed in calculating mortgage expenses, remained steady. EPA-EFE/ALEX PLAVEVSKI

China’s 5.5% stock rally fizzles in blow to market rescue effort

Goldman Sachs said it expects Chinese equity to stage a tradable recovery towards its MSCI China index target of 67 in the remaining months of 2023, which means 10 per cent implied returns, citing easing policy measures, early signs of cyclical stabilisation and supportive market technicals. REUTERS

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