SHANGHAI: China stocks ended lower on Tuesday, weighed down by energy and property shares, as investors awaited details on stimulus steps from a top leadership meeting next week, which sources said could include more than $1.4 trillion in extra debt issuance.
Two sources with knowledge of the matter told Reuters, in a reported published after the market close, that China was considering the extra issuance under a fiscal package aimed at reviving the economy.
China’s blue-chip CSI300 Index dropped 1.0%, while the Shanghai Composite Index was down 1.1%. The Hong Kong benchmark Hang Seng, however, was up 0.5%.
Chinese energy and property shares were down 2.1% and 2.7%, respectively, while information technology shares were up 0.2%.
One bright spot was the Beijing Stock Exchange (BSE), where the BSE 50 index rose 3.7%.
In Hong Kong, technology shares rose 1.1% but the gains were offset by losses in property stocks.
Investor attention is focused on a top Chinese leadership meeting that will be held from Nov. 4-8. Sources told Reuters that Beijing may announce a stronger fiscal package if Republican presidential candidate Donald Trump wins next week’s US election, as his return to the White House would be expected to intensify economic headwinds for China.
China outlined steps on Monday to improve family planning and parenting measures in an effort to boost the number of births, according to a statement from the state council, or cabinet, after two consecutive years of shrinking population numbers.
Source: Brecorder
