SHANGHAI: China stocks were roughly flat on Tuesday, as sentiment is subdued ahead of the highly anticipated ‘Third Plenum’ meeting where some stimulus measures are expected to be announced, while Hong Kong shares dropped on losses in property companies.
China stocks gain on quickening factory activity
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Trading turnover has fallen, mutual fund issuance has cooled, and northbound outflows have appeared, UBS analysts said in a note, adding that market sentiment is subdued.
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“But from here, we think downside is limited. Underpinning A-shares are the government’s repeated assurances this year that it would safeguard capital markets,” UBS analysts said.
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China’s Communist Party will hold a long-delayed third plenum from July 15-18, where some fiscal and financial reform measures are likely to be revealed.
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At the midday break, the Shanghai Composite index was down 0.01% at 2,922.27.
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China’s blue-chip CSI300 index was down 0.11%, with its financial sector sub-index lower by 0.32%, the consumer staples sector down 0.88%, the real estate index down 0.29% and the healthcare sub-index down 1.03%.
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Chinese H-shares listed in Hong Kong fell 0.59% to 6,247.88, while the Hang Seng Index was down 0.46% at 17,443.15.
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Mainland property developers traded in Hong Kong was down 4.9%.
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The smaller Shenzhen index was up 0.13%, the start-up board ChiNext Composite index was weaker by 0.13% and Shanghai’s tech-focused STAR50 index was up 1.32%.
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Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.13% while Japan’s Nikkei index was up 2.16%.
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The yuan was quoted at 7.2726 per US dollar, 0.06% weaker than the previous close of 7.268.
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