HONG KONG: China’s blue-chip shares and Hong Kong stocks weakened on Tuesday, joining a broader retreat in the region, after Beijing kept key lending rates unchanged and stronger GDP data dampened expectations for additional stimulus.
China’s blue-chip CSI300 Index ended 0.5 percent lower, while the Shanghai Composite Index inched up 0.1 percent.
CSI Banks Index dropped 0.9 percent, while the financial sector lost 1.2 percent. The gold-related sector weakened 1.8 percent as bullion prices continued to slip.
The startup board ChiNext Composite index was down by 0.3 percent, and Shanghai’s tech-focused STAR50 index rose 1 percent.
In Hong Kong, the benchmark Hang Seng was down 1.3 percent, and the Hang Seng Tech Index fell 1.5 percent to a two-year low.
In a sign that policymakers are in no rush to roll out further monetary easing following the strong GDP reading, China left its benchmark lending rates unchanged for the 17th straight month on Tuesday, in line with market expectations.
China’s economy rebounded from a three-year low last quarter, expanding 4.5 percent and beating estimates, as robust exports offset tepid domestic demand.
The stable headline growth “lessens the urgency to unleash a new volley of fiscal and monetary stimulus”, analysts at Maybank said in a note.
Without additional stimulus, sluggish domestic investment and consumption will still lead to slightly slower growth, they added.
The smaller Beijing Stock Exchange 50 Index jumped 3.9 percent at the market close, after China’s securities regulator, the CSRC, said it would launch an ETF tracking the index to support the bourse’s development.
Asian stocks retreated broadly on Tuesday while oil rose as geopolitical risks rattled sentiment ahead of key results from AI bellwether companies.
Comments