HONG KONG: China shares eked out small gains and Hong Kong stocks pared early losses to end flat on Thursday, as investors awaited Beijing’s stimulus measures that would boost the country’s economic recovery.
But gains were capped by worries over a deepening property crisis and concerns about potential spillover from payment woes of shadow banking-linked trust products, analysts said.
China’s blue-chip CSI300 Index rose 0.33%, while the Shanghai Composite Index inched up 0.43%.
Hong Kong’s benchmark Hang Seng ended down 0.01%, recouping from a more than 2% earlier in the session. The Hang Seng China Enterprise Index was up 0.31% ** China’s Cabinet said late Wednesday it would continue to widen policy room for expanding consumption, and strengthen policy coordination to meet this year’s economic target.
Goldman Sachs analysts said in a report earlier this week that more easing measures are expected in coming months, with a combination of monetary, fiscal, housing and consumption.
Still, “weighing on sentiment is the debt crisis faced by the country’s property and (trust) sector,” said Kenny Ng, securities strategist, China Everbright Securities International.
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