HONG KONG: Hong Kong stocks rebounded on Wednesday from a decline in the previous session while China shares were largely flat as investors await policy support details from the National People’s Congress (NPC) this week.
Hong Kong’s Hang Seng Index climbed 1.7%, and the Hang Seng China Enterprises Index jumped 2%.
The blue-chip CSI 300 Index dipped 0.4%, and the Shanghai Composite Index edged down 0.3%, both snapping a four-day winning streak.
Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5% on Tuesday in his maiden work report. However, investors and analysts remain cautious as the report lacks policy details that support the achievement of the target.
“We think risk sentiment may remain volatile in the coming days as investors process the fiscal pledges and wait for industry-specific policies,” UBS Global Wealth Management’s chief investment office said in a note.
Morgan Stanley economists pointed out that the fiscal package, which set the fiscal deficit target at 3% of GDP, remains insufficient to boost the economy amid mounting local government debt pressure.
The economic rebalancing efforts remain relatively slow, they added.
Meanwhile, investors are closely monitoring a press conference on Wednesday, which is being attended by top policymakers.
“We will further strengthen the protection of investors... to attract more investment, especially long-term funds to participate in this market,” Wu Qing, the newly-appointed chairman of the China Securities Regulatory Commission (CSRC), told reporters.
At the same meeting, Pan Gongsheng, governor of the People’s Bank of China (PBOC), added there was still room for cutting the bank’s reserve ratio requirement.
The Hang Seng Tech Index advanced 2.7% after a 4% tumble in the previous session.
Index heavyweights Alibaba and Tencent jumped 3.1% and 2.4%, respectively.
Among mainland A-shares, semiconductor stocks dropped 1.4% to lead the decline.
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