SHANGHAI: China shares closed roughly flat on Wednesday, as strong performances of metal-linked stocks partially offset losses in semiconductor names, while Hong Kong equities edged higher.
China’s blue-chip CSI300 Index ended 0.2 percent lower, while the Shanghai Composite Index closed 0.1 percent up. Hong Kong benchmark Hang Seng was up 0.3 percent.
China’s CSI Non-ferrous Metal Industry Index climbed 2.5 percent, leading gains onshore, while Hong Kong’s material shares rose 2.4 percent.
China’s central bank said on Tuesday it will step up financial support to boost domestic demand, as industrial overcapacity and lacklustre consumption weighed on business confidence and dampened the growth outlook.
Consumer staples were roughly flat after data showed China’s consumer inflation cooled in January, while producer price deflation persisted, reinforcing market calls for more policy measures to address the mismatch between supply and demand.
The CSI Liquor Index was down 0.2 percent.
Tech majors listed in Hong Kong were up 0.9 percent, while onshore semiconductor shares dropped 1.2 percent.
About 55 trillion yuan (USD7.96 trillion)–60 trillion yuan of bank savings, roughly split between households and corporates, are set to mature by 2026, according to UBS analysis of major Chinese banks. UBS strategist Lei Meng said this could release “excess savings” built up since 2020, with household funds likely to keep flowing into markets through direct channels such as stocks and mutual funds and indirect channels such as insurance.
As global capital trickles back toward China, policymakers are signalling they want growth without the froth, using tougher enforcement and cooling measures to slow the market’s pace to strengthen its long-term appeal.
Shares of WuXi Biologics climbed as much as 4 percent to their highest level since October 9 on robust earnings.
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