SHANGHAI: China stocks held steady on Tuesday, as investors awaited the details of reform measures announced at the ‘Third Plenum’ meeting amid a slew of weak economic data. Hong Kong shares fell, dragged by tech stocks.
China stocks rise as weak GDP data
China’s economy grew much slower than expected in the second quarter as a protracted property downturn and job insecurity knocked the wind out of a fragile recovery, keeping alive expectations that Beijing will need to unleash more stimulus.
The highly watched Third Plenum will outline efforts to promote advanced manufacturing, revise the tax system to curb debt risks, manage a vast property crisis, boost domestic consumption and revitalise the private sector. The details will likely come out on Thursday.
Shares of China’s Ping An Insurance fell 5.4% in Hong Kong, after the insurer said it had raised $3.5 billion in a convertible bond.
At the midday break, the Shanghai Composite index was down 0.21% at 2,967.85.
China’s blue-chip CSI300 index was up 0.21%, with its financial sector sub-index down 0.54%, the consumer staples sector up 0.16%, the real estate index up 1.74% and the healthcare sub-index trading 0.17% higher.
Chinese H-shares listed in Hong Kong fell 1.34% to 6,335.88, while the Hang Seng Index was down 1.37% at 17,769.96.
Hong Kong-listed tech giants declined 1.7%, with Trip.com down 6.1%.
The smaller Shenzhen index was down 0.07%, the start-up board ChiNext Composite index was higher by 0.39% and Shanghai’s tech-focused STAR50 index was up 0.94%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.35%, while Japan’s Nikkei index was up 0.34%.
The yuan was quoted at 7.2649 per US dollar, 0.08% weaker than the previous close of 7.259.