HONG KONG: Chinese and Hong Kong stocks pared losses on Wednesday after the latest stimulus efforts, but sentiment remained subdued amid geopolitical tensions and economic uncertainties.
China’s blue-chip CSI 300 index lost as much as 1.7% during the session, but pared some of it to close 0.2% lower at 3,789.22 points. The Shanghai Composite index also pared losses and closed flat at 3,230.17 points.
In Hong Kong, the benchmark Hang Seng Index closed 0.9% lower after dropping as much as 1.7% earlier in the session, extending its decline to a third consecutive day and reaching its lowest point since late September.
The losses were narrowed in the afternoon trading session as markets digested Beijing’s latest measures to expand the scope of consumer trade-ins. ** Leading the decline onshore, shares of semiconductor firms fell 0.7%, giving up some of the gains made on Tuesday following the US Defense Department expanding the list of firms allegedly aiding Beijing’s military.
Shares of chipmaker Semiconductor Manufacturing International Corporation closed down 2% after weakening to a three-week low during the trading session. Peer Hua Hong Semiconductor lost 1.1%.
More home appliances, such as microwave ovens and water purifiers, have been added to the list of products eligible for the consumer trade-in scheme.
Subsidies for digital goods will also be offered this year to help revive demand in the sluggish household sector, authorities said on Wednesday.
Both funding and implementation matter for the effectiveness of China’s consumption stimulus and were in line with expectations, but the 2025 fiscal budget to be released during the March “Two Sessions” will be the key to gauging the funding strength, analysts at Goldman Sachs said in a note on Wednesday.
Comments
Comments are closed.