SHANGHAI: China stocks closed lower on Monday even as measures were announced to spur private investment, while traders looked for policy signals from a Politburo meeting likely happening at the end of this week. Hong Kong shares also fell, dragged by property and tech stocks.
China’s blue-chip CSI300 Index closed down 0.4%, while the Shanghai Composite Index lost 0.1%. Hong Kong’s benchmark Hang Seng Index was down 2.1%.
China’s state planner on Monday unveiled measures that seek to promote and spur private investment in some infrastructure sectors, adding it will strengthen financing support for private projects.
However, the market did not react positively.
Consumer staples stocks erased gains from the previous session, down 1.1%.
Hong Kong-listed property developer Country Garden and property service arm Country Garden Services Holdings tumbled, extending losses from the previous week on debt concerns.
Mainland property companies listed in Hong Kong slumped more than 6.4%, the biggest single-day decline in seven months.
Tech stocks listed in Hong Kong also slipped. Alibaba shares were down 1.9% after the company said on Sunday it had decided not to participate in a proposed repurchase of shares by affiliate Ant Group but would maintain its shareholding in the company.
Steps announced by policymakers last week to boost consumption also had a limited impact on the market and all eyes are now on the July Politburo meeting, likely to take place at the end of this week.
“The attention on the probable meeting and statement tells you how desperate the market is for additional stimulus measures from Beijing,” said Alvin Tan at RBC Capital Markets.
“I am doubtful that we will see significant measures.”
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