China stocks fall as Country Garden drags property developers lower

SHANGHAI: China stocks closed down on Wednesday, dragged by property developers as Country Garden missed a coupon payment, while some investors booked profit after they saw no policy surprise from the annual parliament meeting.

China’s Shanghai Composite Index lost 0.7%, while the blue-chip CSI300 Index slipped 0.4% at market close.

Hong Kong’s benchmark Hang Seng Index edged down 0.1% and the Hang Seng China Enterprises Index lost 0.3%.

Country Garden Holdings fell 4.9% 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.

The CSI 300 Real Estate Index declined 2.6%, while insurance slumped 3.4%. However, shares in anime comic games jumped 4.3%.

In Hong Kong, mainland developers listed in the city slipped 1.1%, but tech giants gained 0.3%.

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.

“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.

“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.

China should rely more on structural reforms and less on economic stimulus to drive economic growth this year, Liu Shijin, a policy adviser to the central bank, said on Wednesday.