HONG KONG: China and Hong Kong stocks dipped on Tuesday as recent economic indicators barely offered any comfort, while the lack of fresh stimulus policies also kept investors on the sidelines.
China left benchmark lending rates unchanged at a monthly fixing, in line with market expectations.
Shrinking interest margins at lenders hampered continued easing efforts after China lowered a string of key interest rates a month earlier.
Tech shares drive Hong Kong stocks higher; China stocks flat
Coal stocks led the decline as sluggish mid-year earnings and demand left traders disappointed. Downside risk to China growth is rising, Goldman Sachs economists said in a note.
“If we are wrong and fiscal policy remains restrictive through the remainder of the year, the various negative forces at play could reinforce each other and growth would slow further.”
China’s bank lending tumbled more than expected in July and hit the lowest in nearly 15 years, according to data released last week.
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The Shanghai Composite index was down 0.1% at 2,865.18 points on Tuesday.
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China’s blue-chip CSI300 index was down 0.7%, with its financial sector sub-index down 0.1%, the consumer staples sector dipped 0.6%, the real estate index slipped 1.5% and the healthcare sub-index dropped 1.2%.
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Chinese H-shares listed in Hong Kong fell 0.5% to 6,192.79, while the Hang Seng Index was down 0.4% at 17,506.34.
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The smaller Shenzhen index was down 1.3%, the start-up board ChiNext Composite index was weaker by 1% and Shanghai’s tech-focused STAR50 index was down nearly 1%.
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MSCI’s Asia ex-Japan stock index gained 0.23% while Japan’s Nikkei index was up 1.80%.
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The yuan was quoted at 7.146 per US dollar, 0.1% weaker than the previous close of 7.139.
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