2 weeks Ago
HONG KONG: China and Hong Kong stocks dipped on Wednesday, with investors cautious ahead of the U.S. election, while also awaiting China's economic data and a top leadership meeting next week that could reveal fiscal stimulus details.
China's blue-chip CSI300 Index dropped 1.1%, while the Shanghai Composite Index dipped 0.9%.
Hong Kong benchmark Hang Seng was down 1.9%. On Tuesday, Reuters reported China is considering approving next week the issuance of over 10 trillion yuan ($1.
4 trillion) in extra debt in the next few years to revive its fragile economy. The potential package failed to impress the markets with analysts saying the size is in line with expectations while support for consumption remains modest. More clues on the fiscal stimulus package may come from a meeting of China’s National People’s Congress, set for next week.
"The market has been eager to get a concrete number (of the fiscal stimulus package). Of course implementation is key, depending much on monetary transmission and consumption power," said Linda Lam, head of equity advisory for North Asia at UBP. By midday, liquor makers, banks and energy firms were among top underperformers in mainland A-shares.
In Hong Kong, Chinese tech giants listed in the city lost 2.6%. The U.
S. is finalizing rules that will limit U.S.
investments in artificial intelligence and other technology sectors in China. Investors are nervous about a tight U.S.
election race that could have huge ramifications for China, with Republican candidate Donald Trump vowing to impose a 60% duty on imports from China. Markets are also focusing this week on purchasing managers index readings from the country, due on Thursday and Friday, that would provide fresh clues on the health of the world's second largest economy. - Reuters.
