HONG KONG: China stocks moved choppily on Wednesday while Hong Kong shares rose, as investors looked forward to a government briefing focused on the struggling property sector.
China’s blue-chip CSI300 Index edged down 0.2%, while the Shanghai Composite Index was up 0.4%. In Hong Kong, the benchmark Hang Seng climbed 0.9%. and the Hang Seng China Enterprises Index rose 1%.
China will hold a press conference on Thursday to discuss promoting the “steady and healthy” development of the property sector, the State Council Information Office said on Tuesday.
That rekindled hopes of further policy easing to underpin a recovery in the housing market and a broad economic revival.
Swiss private bank UBP believes the policy announcements so far showed China is seeking to place a floor under asset prices as well as 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 chief strategist.
China stocks slip as investors wait on fiscal spending
He added that uncertainties remained in terms of the scale and implementation of the stimulus. Chinese stocks have tumbled 10% since Oct. 8, as investors were disappointed by the lack of details on subsequent fiscal stimulus measures and weak September economic data.
The fall came after a 10-day rally sparked by a policy pivot in late September to pull the economy out of its deflationary funk.
“People are still waiting for unexpected positive news to the market,” said Steven Leung, executive director at UOB Kay Hian, referring to cautious market sentiment.
Property stocks led the gains, with the CSI real estate index and Hong Kong-listed mainland property stocks up 4.5% and 5.2%, respectively.
Homebuilder Sunac China surged 22% by midday, while China Vanke’s mainland and Hong Kong shares jumped 7% and 15% respectively.
Meanwhile, 5G Communications and photovoltaic stocks were down 2.4% and 1.9%, leading the decline.