HONG KONG: China stocks struggled for direction on Friday and inched lower by midday as a slew of domestic data showed that growth prospects for the world’s second-largest economy remain challenging.
China’s factory output topped forecasts in April, while retail sales unexpectedly slowed and new home prices fell at fastest pace in over 9 years, piling pressure on Beijing to do more to support growth.
Meanwhile, China’s finance ministry auctioned 30-year bonds at a yield of 2.57% on Friday, as Beijing kicked off sales of 1-trillion-yuan long-term special bonds to help stimulate a flagging economy.
China stocks track Asian markets higher
Shares of some Chinese property developers rose by midday ahead of a news briefing held by officials about policies to ensure completion of housing projects.
Hong Kong stocks extended gains, driven by a 7% surge in Alibaba Group after US regulatory filings show some global funds, including “Big Short” investor Michael Burry, accumulated the firm’s stocks last quarter. Hang Seng Tech Index was up 0.7%.
At the midday break, the Shanghai Composite index was down 0.1% at 3,119.27 points.
China’s blue-chip CSI300 index was down 0.2%, with its financial sector sub-index higher by 0.06%, the consumer staples sector up 0.07%, the real estate index down 1.01% and the healthcare sub-index down 0.85%.
Chinese H-shares listed in Hong Kong rose 0.34% to 6,894.43, while the Hang Seng Index was up 0.29% at 19,433.14.
The smaller Shenzhen index was down 0.1%, the start-up board ChiNext Composite index was weaker by 0.19% and Shanghai’s tech-focused STAR50 index was up 0.12%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.34% while Japan’s Nikkei index was down 0.32%.
The yuan was quoted at 7.2265 per US dollar, 0.09% weaker than the previous close of 7.2199.