HONG KONG: Hong Kong shares extended their rally to a third straight session on Wednesday, driven by stronger-than-expected credit figures in June and tech stocks’ gains, though Chinese stocks edged down as investors waited for a bigger stimulus.
The Shanghai Composite Index dropped 0.78% despite upbeat credit data; China’s blue-chip CSI 300 Index declined 0.67% ** Hang Seng Index advanced 1.08%, and Hang Seng China Enterprises Index gained 1.30%.
China’s new bank loans jumped more than expected in June from the previous month, helped by central bank efforts to support the economy as a post-pandemic recovery fades.
However, analysts at BofA Securities said in a note on Wednesday that they doubt expanding credit supply alone will be effective in lifting growth momentum significantly at a time when confidence in both households and private sector remains weak.
“In our view, the downside risks on growth calls for more timely and effective easing measures to boost domestic demand,” they said.
The National Development and Reform Commission (NDRC), China’s top economic planner, said on its official WeChat account on Wednesday they have visited companies including Alibaba, Tencent and Meituan recently, and praised the leading role the companies are taking in innovations and high-quality development.
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