HONG KONG: China and Hong Kong stocks opened lower on Monday as Beijing’s local government debt relief package fell short of investors’ expectations.
China’s blue-chip CSI300 Index declined nearly 1% at the open, while the Shanghai Composite Index fell 0.6%. Hong Kong’s benchmark Hang Seng Index lost 2%.
China unveiled a 10 trillion yuan ($1.4 trillion) debt package after market close on Friday to ease local government financing strains and stabilise flagging economic growth, but it contained no direct stimulus.
Investors were largely unimpressed and worried it might not be enough to preempt another round of fractious Sino-US tensions and trade barriers.
China stocks end lower as expectations cool for Beijing’s fiscal stimulus
US presidential election winner Donald Trump has vowed to adopt blanket 60% tariffs on US imports of Chinese goods when he returns to the White House.
Offshore-listed China stocks slumped after the debt relief plan was announced on Friday.
The Nasdaq Golden Dragon China Index tumbled 4.7%, while the KraneShares CSI China Internet ETF plunged 6.7%.
Source: Brecorder
