SHANGHAI: China stocks fell on Tuesday, as mixed economic data elevated concerns about the country’s growth, with investors cautiously awaiting economic indicators and policy meetings for more clues.
** The blue-chip CSI 300 Index lost 0.8%, and the Shanghai Composite Index was down 0.7% by the midday recess.
** Hong Kong’s Hang Seng Index lost 1.8%, and the Hang Seng China Enterprises Index declined 1.4%.
** The broad Asian stock markets slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to US interest rates and waited on US jobs data.
** China’s services activity expanded at a quicker pace in November, a private-sector survey showed on Tuesday.
** However, the findings present a mixed picture of the vast services sector as an official survey last week showed the sector unexpectedly contracted for the first time since December last year, prompting calls for more stimulus measures.
** China and broader emerging Asia market stocks were among the most net sold regions by global hedge funds in November, Goldman Sachs said, as fund managers further reduced exposure to the world’s second-largest economy.
China stocks extend fall on growth concerns
** Foreign investors sold a net 4.7 billion yuan ($657.86 million) of Chinese shares so far on Tuesday.
** Most sectors declined, with real estate developers , semiconductors and computers down between 1.6% and 2.2%.
** Tech giants listed in Hong Kong slumped 2%.
** Market participants are awaiting more economic data later in the week and the upcoming Politburo meeting and the annual Central Economic Work Conference (CEWC), which usually discuss policy plans and the outlook for the world’s second-largest economy.
** UBS economists expect modest but explicit fiscal support to be announced during the CEWC. They also expect high frequency data would point to a continued y/y decline in property sales.
Comments
Comments are closed.