SHANGHAI: China stocks dropped on the first trading session of the new year, snapping a three-session winning streak, as latest data signalled uneven economic recovery while business confidence for 2024 appeared to be subdued.
** The blue-chip CSI 300 Index lost 1.1%, and the Shanghai Composite Index slipped 0.2% by the midday recess on Tuesday.
** Hong Kong’s Hang Seng Index fell 1.5%, and the Hang Seng China Enterprises Index went down 1.6%.
** The broader Asian shares started the trade on a steady footing, as investors returning after a holiday lull looked ahead to fresh trading catalysts from key economic releases later in the week.
** A private-sector survey showed China’s factory activity expanded at a quicker pace in December due to stronger gains in output and new orders, but business confidence for 2024 remained subdued.
** The Caixin PMI contrasted with official data released on Sunday that showed manufacturing activity shrinking at a faster pace and more than expected in December.
** The divergence is likely related to differences in geographic coverage and sector coverage, Goldman Sachs said in a note.
** In a televised speech to mark the New Year, President Xi Jinping said on Sunday that China will consolidate and enhance the positive trend of its economic recovery in 2024, and sustain long-term economic development with deeper reforms.
China stocks rebound on strong foreign inflows
** Foreign investors sold a net 3.7 billion yuan ($519.23 million) of Chinese stocks via the Stock Connect so far on the day.
** Real estate developers slumped 3% to lead the decline, while shares in consumer staples, artificial intelligence, new energy declined between 1.4% and 1.8%.
** Tech giants listed in Hong Kong lost 1.2%, and mainland developers dropped 3.4%.
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