SHANGHAI: Hong Kong shares declined while China stocks edged up on Friday after China’s central bank left a key policy rate unchanged, while declining home prices dragged property shares lower.
Hong Kong’s benchmark Hang Seng closed down 1.4%, and the Hang Seng China Enterprises Index lost 1.5%.
China’s Shanghai Composite Index edged up 0.2%, while the blue-chip CSI 300 Index gained 0.5%.
For the week, the CSI 300 rose 0.7%, marking a five-week winning streak amid policy support, and the Hang Seng rose 2.2%.
Global stocks were set to end the week on a tepid note, following seven weeks of gains, after hotter-than-forecast US inflation knocked back bets for how soon and often the Federal Reserve will cut interest rates.
China’s central bank left the one-year medium-term lending facility rate unchanged while withdrawing cash from a medium-term policy loan operation, as authorities continued to prioritise currency stability amid uncertainty over the timing of expected Federal Reserve interest rate cuts.
“We expect there is limited room for PBOC (People’s Bank of China) policy easing before global central banks start to cut rates,” said Lynn Song, chief economist, Greater China at ING.
China’s new home prices dropped for an eighth straight month in February, official data showed, suggesting the fragile property market is struggling to find a bottom despite a slew of measures to shore up the sector.
New home prices fell 0.3% month-on-month, in line with January’s decline. On an annual basis, prices fell 1.4%, faster than the 0.7% drop in January and the biggest decline in 13 months.
The CSI 300 Real Estate Index lost 0.9%, and the Hang Seng Mainland Properties Index slumped 1.9. Tech giants listed in Hong Kong also lost 1.5%.
In mainland markets, shares in communications, non-ferrous metal gained 2.1% and 3.5%, respectively.
Copper prices led gains among metals, buoyed by a potential output cut in top producer China.
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