HONG KONG: China and Hong Kong shares clawed back some early losses to close largely flat on Wednesday as investors awaited trade data for clues about the health of the world’s second-largest economy, while property stocks surged on talk of further easing.
China’s blue-chip CSI 300 Index ended 0.22% lower, while the Shanghai Composite Index rose 0.12%.
Hong Kong’s Hang Seng Index was flat, and the Hang Seng China Enterprises Index climbed 0.11%. China is set to release its August trade data on Thursday. Both exports and imports are expected to further contract on a year-on-year basis, but at a slower pace.
This will follow a notable decline in the August Caixin/S&P Global services purchasing managers’ index published on Tuesday, indicating that bigger stimulus is needed to revive the economy. China’s current economic woes are caused by both cyclical and structural factors, and require measures on both fronts, said Wang Tao, chief China economist at UBS.
“To put the economy on a stronger recovery path, the most urgent task is to prevent property activities from sliding further,” she said, suggesting a further relaxation in purchasing restrictions and more support for property developers.
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