HONG KONG: China stocks logged a choppy session, while Hong Kong shares pared early gains to finish lower on Wednesday, as investors awaited fiscal stimulus details and looked forward to a government briefing focused on the struggling property sector.
China’s blue-chip CSI300 Index dropped 0.6%, while the Shanghai Composite Index was up a mild 0.05%.
In Hong Kong, theChina stocks wobble as investors await further stimulus
benchmark Hang Seng edged down 0.2%. and the Hang Seng China Enterprises Index slid 0.1%.
While policy has pivoted, the sharp run-up in China equities in recent weeks has largely sapped the short-term upside potential, a fund manager survey conducted by BofA Securities showed.
“People are still waiting for more unexpected positive news to the market,” said Steven Leung, executive director at UOB Kay Hian, referring to the cautious market sentiment.
China said it will hold a press conference on Thursday to discuss promoting a “steady and healthy” development of the property sector, rekindling hopes of further policy easing to underpin a recovery in the housing market and a broad economic revival.
Property stocks gained, with the CSI real estate index and Hong Kong-listed mainland property stocks adding 5.1% and 3.4%, respectively.
Homebuilder Sunac China surged 40%, while China Vanke’s mainland and Hong Kong shares jumped 9% and 19%.
Elsewhere, 5G Communications and photovoltaic stocks were down 3% and 2.6%.
Swiss private bank UBP believes the policy announcements so far showed China is seeking to place a floor under asset prices and the economy as a whole.
“Should renewed pressure on asset prices or consumption emerge, policy in fact stand ready to once again act to shore up both segments of the economy, a positive for investors,” said Norman Villamin, UBP Group’s chief strategist.
Comments