SHANGHAI: China and Hong Kong stocks jumped on Thursday, led by tech giants, after authorities sent another strong signal that a years-long crackdown on its tech industry is over.
** China’s blue-chip CSI 300 Index rose 1.1%, while the Shanghai Composite Index added 0.9% by the midday recess.
** Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index both climbed 2.5%.
** Other Asian shares and bonds also rallied, while the dollar nursed heavy losses as a surprisingly low reading on US inflation stoked speculation the end of the post-pandemic tightening cycle is in sight.
** Chinese tech giants listed in Hong Kong rallied 3.4% after Premier Li Qiang urged the companies to support a slowing economy, adding to signs that a years-long crackdown on the sector is over.
** Tai Hui, APAC chief market strategist, J.P. Morgan Asset Management, is positive on China internet stocks for the second half and believes these companies will deliver decent results as they have adjusted their business models.
** Elizabeth Kwik, investment director of Asian equities at abrdn, said there are broader concerns influencing the China stock market, “such as the weak consumer recovery in the mainland, as well as concerns over US-China geopolitical dynamics”.
** China’s exports fell 12.4% in June year-on-year, customs data showed on Thursday, worse than an economists’ forecast of a 9.5% contraction in a Reuters poll, suggesting momentum in the country’s post-pandemic recovery is slowing.
HK shares up on credit data surprise; China stocks slip
** “Export growth dropped further as external demand weakened,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “The big question in the next few months is whether domestic demand can rebound without much stimulus from the government.”
** In onshore markets, shares in consumer staples, semiconductors and non-ferrous metal added more than 2% each.
Comments
Comments are closed for this article.