Hong Kong shares closed up 0.27 percent on Wednesday after China released data showing the world's number two economy grew more than expected in the second quarter. The benchmark Hang Seng Index added 63.32 points to 23,523.28 on turnover of HK$53.46 billion (US $6.90 billion). The National Bureau of Statistics said China's economy expanded 7.5 percent in April-June thanks largely to Beijing's stimulus measures put in place to fend off a slowdown.
The figure beat the 7.4 percent in the previous three months and exceeded the median forecast of 7.4 percent in a survey of 17 economists by AFP. "Generally speaking, China's economy showed good momentum of stable and moderate growth in the first half-year," said statistics bureau spokesman Sheng Laiyun. Beijing has introduced a series of policies since April to shore up growth, including tax breaks for small enterprises, infrastructure spending and the encouragement of lending in rural areas and to small companies. "We expect both monetary and fiscal policies to remain accommodative in the months ahead to consolidate the recovery," HSBC said in a note to clients.
Traders were given a soft lead from Wall Street, where the Nasdaq was the big loser after the Fed said in a report that it thought some technology stocks appeared overvalued. The tech-heavy index ended 0.54 percent lower, while the broad-based S&P 500 fell 0.19 percent and the Dow inched up 0.03 percent. China Mobile added 0.55 percent to HK81.65, Internet firm Tencent rose 0.4 percent to HK$124.3, insurance giant AIA was 1.02 percent up at HK$39.45 and CCB bank was unchanged at HK$5.58.
In China the benchmark Shanghai Composite Index slipped 0.15 percent, or 3.08 points, to 2,067.28 on turnover of 102.0 billion yuan ($16.4 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.03 percent, or 11.53 points, to 1,105.22 on turnover of 123.7 billion yuan. "The figure is basically in line with expectations, so it didn't have much impact on the market, which was mainly dragged down by profit-taking," Zheshang Securities analyst Zhang Yanbing told AFP. Defence stocks and shares related to new energy vehicles led the declines, following recent gains.
On the Shanghai market, Shaanxi Aerospace Power Hi-Tech tumbled 7.36 percent to 11.83 yuan while Jiangxi Hongdu Aviation Industry lost 5.78 percent to 17.11 yuan. Anhui Jianghuai Automobile fell 2.47 percent to 11.83 yuan in Shanghai, while auto parts maker Wanxiang Qianchao dropped 5.47 percent to 12.79 yuan in Shenzhen. Financial plays were mostly lower in Shanghai. Banking giant ICBC slid 0.29 percent to 3.46 yuan while China Life Insurance shed 0.29 percent to 13.78 yuan.
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