SHANGHAI: China and Hong Kong stocks were roughly flat on Wednesday, as the market is weighing geopolitical risks and factors that may affect the property market.
China’s blue-chip CSI300 Index and the Shanghai Composite Index closed flat. Hong Kong benchmark Hang Seng Index only edged up 0.1%.
China’s embassy in Washington on Tuesday defended its business practices after U.S. Commerce Secretary Gina Raimondo said U.S. firms told her that China had become “uninvestible.”
Any new developments between China and the U.S. are highly watched by investors. August has seen foreign capital net selling, via the northbound trading link, of more than 85 billion yuan ($11.66 billion) so far, set to log the biggest monthly outflow on record.
Semiconductor shares jumped on speculations that Huawei’s newly launched phones would be 5G compatible and would benefit companies in its value chain.
HWA Create Corp rose as much as 20%.
Shares in China’s banking sector dropped on worries that a reduction in existing mortgage rates will dent the profitability of lenders already reeling from a worsening property sector crisis and slowing economy.
Meanwhile, property developer stocks edged up.
China’s southern city of Guangzhou issued a notice that it would ease mortgage curbs, allowing home buyers to enjoy preferential loans for first-home purchases regardless of their previous credit record.
Market is monitoring closely Country Garden’s new developments, including its half-year results due later in the day.
Tech stocks traded in Hong Kong were up nearly 2%, but erased the gains by market close. This came despite the Chinese American Depository Receipts (ADRs) trading higher in New York as online retailer Pinduoduo’s earnings posted a positive surprise.
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