China, HK stocks flat as investors digest mixed macro data

SHANGHAI: China and Hong Kong stocks held steady on Monday, as investors weighed mixed macroeconomic data and remained cautious amid persistent geopolitical tensions that continued to dampen risk appetite.

• China’s blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index gained 0.1%. Hong Kong benchmark Hang Seng was also down 0.1%.

• China’s factory output growth hit a six-month low in May, while retail sales picked up steam, offering temporary relief for the world’s second-largest economy amid a fragile truce in its trade war with the United States.

• The golden week holiday and discounts on e-commerce platforms starting in mid-May, ahead of the so-called “618” shopping event, should have helped to boost consumption during the month, said UBS analysts in a note.

• “But it remains to be seen whether the momentum can sustain, especially as the effects of the consumer trade-in program begin to fade and tariff outlook remains uncertain.”

• Meanwhile, Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa on Monday, destroying homes and limiting risk appetite in the onshore and offshore markets.

• Shares of energy equipment and service providers jumped, with Xinjiang Keli New Technology Development Co up 24%.

• New bank lending in China rose less than expected in May after hitting a nine-month low in April, as companies and consumers remained cautious about taking on more debt despite interest rate cuts and a trade truce between Beijing and Washington.

• Onshore real estate shares gained 2.5%, while artificial intelligence shares rose 0.7%.