SHANGHAI: China stocks fell on Wednesday, dragged by property developers as Country Garden missed a coupon payment amid some profit-taking after no policy surprise from the annual parliament meeting, while Hong Kong shares tracked global peers higher.
China stocks slip, Hong Kong up ahead of US inflation data
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China’s Shanghai Composite Index lost 0.6%, while the blue-chip CSI300 Index slipped 0.3% by the midday break.
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Hong Kong’s benchmark Hang Seng added 0.3%, and the Hang Seng China Enterprises Index was flat.
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The broader Asian shares market notched seven-month highs, tracking record peaks on Wall Street overnight, as investors mostly shrugged off slightly hotter-than-expected US inflation, betting that it would not derail interest rate cuts expected by the middle of the year.
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Country Garden Holdings fell 3.3%, as the Chinese property developer said funds for a 96 million yuan ($13 million) coupon payment due Tuesday were not fully in place and it planned to raise funds for the missed onshore coupon payment within 30-day grace period.
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The CSI 300 Real Estate Index declined 2.3%, insurance slumped 3%, and infrastructure lost 2.6%.
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In Hong Kong, mainland developers listed in the city slipped 0.7%, but tech giants gained 0.8%.
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Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5%, while analysts say much more stimulus may be needed to hit this year’s target.
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“There were no upside surprises from the long-awaited National People’s Congress, with headline economic and fiscal targets in line with market expectations, while policy details were lacking,” said UBS in a note.
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“While policy remains supportive, most of the good news seems priced in with the recent rally,” the bank said, adding it cuts Chinese equities from most preferred to neutral.
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