HONG KONG: China stocks edged lower on Friday, pausing their recent rally, as investors locked in gains ahead of a key Politburo meeting, though the market remained on track for a fifth straight weekly gain.
-
At the midday break, the Shanghai Composite index fell 0.3% to 3,593.38, after logging the highest close since January 2022 on Thursday. China’s blue-chip CSI300 index lost 0.5%.
-
Liquor distiller, consumer staples and rare earth sectors led the declines, with losses ranging from 0.9% to 1.6%.
-
Despite the day’s pullback, the Shanghai Composite index has gained 1.7% so far this week and is set to rise for the fifth straight week - its longest winning streak since the rally that began in February 2024.
-
Beijing’s latest efforts to curb excessive competition and overcapacity, and incremental signs of improving U.S.-China trade relations lifted sentiment.
-
Analysts at CLSA said institutional investors’ overall risk appetite has improved significantly this month, though some remain unconvinced about a structural bull run and see more sector-specific opportunities.
-
Hong Kong’s benchmark Hang Seng Index weakened 1.1% to 25,383.07, after hitting its highest since November 2021 on Thursday.
-
The Hang Seng Tech Index led declines, losing 1.7% on the day.
-
Market attention would be squarely on the Politburo meeting next week, given that it will likely shape economic policy for the rest of the year.
-
Chinese policymakers, concerned about local growth amid an ongoing trade war with the U.S., are unlikely to offer a big gun stimulus this time until there’s more clarity on what’s needed, said Keiko Kondo, Schroders’ head of multi-assets for Asia, who’s neutral on China equities.
Comments
Comments are closed for this article.