SHANGHAI: China stocks retreated on Wednesday, with some investors booking profit after a recent rally led by policy support, while property woes added to investor concerns after a liquidation petition was filed against developer Country Garden.
China stocks rise, led by AI firms
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China’s blue-chip CSI 300 Index slipped 0.3% by the lunch break, while the Shanghai Composite Index lost 0.7%.
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Hong Kong benchmark Hang Seng Index edged down 0.3%, and the Hang Seng China Enterprises Index dropped 0.8%.
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The broad Asian stock market also remained tentative ahead of a US inflation reading this week that could influence the timing of the Federal Reserve’s easing cycle.
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Chinese developer Country Garden said on Wednesday a liquidation petition has been filed against it for non-payment of a $205 million loan, clouding its debt revamp prospects and undermining Beijing’s effort to restore confidence in the property sector.
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Shares of the developer slumped 12.5%, dragging the mainland property sector listed in Hong Kong down 2.1%.
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However, the Hang Seng Property Index rose 1.5%, after Hong Kong Financial Secretary Paul Chan said on Wednesday said the city will cancel all buy-side property tightening measures for residential properties and waive stamp duties payable on the transfer of REIT units.
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In mainland markets, shares in semiconductors and automobiles declined roughly 2% each after jumping in the previous session.
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The market might remain rangebound in the short term, Furong Asset said, after a recent rally on supportive measures.
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China’s blue-chip CSI 300 was up 8.4% so far this month on authorities’ measures to spur economic growth and boost market confidence.
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Market participants are awaiting authorities’ next policy move as China’s rubber stamp parliament - the National People’s Congress - begins its annual meeting on March 5. Reuters
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