SHANGHAI: China stocks were largely flat on Monday, as investors awaited a key Politburo meeting later this week in the hope of stimulus measures to underpin the world’s second-largest economy. Meanwhile, Hong Kong stocks tracked their regional peers higher.
China stocks edge up, led by energy
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Asian shares bounced on Monday into a week packed with earnings and a trio of central bank meetings that could see the United States and UK open the door to easing, while Japan might lift borrowing costs in a step toward “normality”.
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In China, the Politburo, a top decision-making body, will meet in coming days. It is expected to shed some light on China’s near-term policy measures following reform plans laid out at the third plenum two weeks ago.
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“For the July Politburo meeting, we expect policymakers to remain cautious on growth headwinds, reinforce their easing stance and signal more policy support for the remainder of this year, especially on the demand-side such as fiscal and housing easing,” analysts at Goldman Sachs said in a note. “Their long-held stance to support high-tech manufacturing and key supply chains, and to contain systemic financial risks should remain intact, in our view.”
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At the midday break, the Shanghai Composite index was up 0.04% at 2,892.10 points.
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China’s blue-chip CSI300 index was down 0.39%, with its financial sector sub-index higher by 0.56%, the consumer staples sector down 1.06%, the real estate index down 3.26% and the healthcare sub-index down 1.1%.
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Chinese H-shares listed in Hong Kong rose 1.82% to 6,120.04, while the Hang Seng Index was up 1.82% at 17,331.24.
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The smaller Shenzhen index was down 0.24%, the start-up board ChiNext Composite index was weaker by 1.15% and Shanghai’s tech-focused STAR50 index was down 0.46%.
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Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.00% while Japan’s Nikkei index was up 2.37%.
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