SHANGHAI: China and Hong Kong stocks fell on Monday as a lack of concrete stimulus details from China’s State Council meeting disappointed investors, while markets watch for any signs of progress in talks between two of the world’s biggest economies. China’s blue-chip CSI300 Index closed down 0.8%, while the Shanghai Composite Index lost 0.5%. Hong Kong benchmark Hang Seng Index fell 0.6%.
China’s cabinet met on Friday to discuss measures to spur growth in the economy, state media reported, pledging to roll out policy steps in a timely manner amid signs that a post-COVID recovery is fading. “Contrary to some market speculations ahead of the meeting, no concrete policies were announced,” Goldman Sachs analysts said in a note. The stimulus proposal from the State Council meeting remained at high levels and lacked details, so it would not be surprising to see some profit taking in sectors like sportswear or beer, UBS analysts said.
Meanwhile, US Secretary of State Antony Blinken met with China’s top diplomat Wang Yi on Monday at the start of the second and final day of a rare visit to Beijing, aimed at ensuring that the many disagreements between the strategic rivals do not spiral into conflict. Blinken will meet with Chinese President Xi Jinping later on Monday in Beijing, a State Department official said. Shares of Chinese airlines rose after China and the United States agreed to discuss increasing passenger flights between the two countries as Blinken and Chinese foreign minister Qin Gang held talks on Sunday.
Meanwhile, tech stocks traded in Hong Kong were down 1.3%, with Alibaba Group Holding Ltd and Tencent Holdings down 2.1% and 1.6%, respectively.
Comments
Comments are closed.