HONG KONG: China and Hong Kong stocks traded in a narrow range on Wednesday as investors awaited a key economic policy meeting for clues on policy easing next year.
By the midday break, the Shanghai Composite index was up 0.22% at 3,430.25 points, while the blue-chip CSI 300 index slipped 0.04%.
Food and beverage stocks rose 1.2% to lead sectoral gainers.
Other sectoral gainers included real estate, consumer staples and healthcare, which rose 0.73%, 0.44% and 0.12% each, while the financial sector fell 0.78%.
In Hong Kong, the Hang Seng China Enterprises Index rose 0.08% to 7,312.22, while the Hang Seng Index was unchanged at 20,310.34.
Investor focus has shifted to the annual Central Economic Work Conference, which is expected to be held this week, after Monday’s Politburo meeting vowed to switch to an “appropriately loose” monetary policy to spur economic growth. But detailed measures remain unclear.
“The market is anxiously waiting for details on what exactly the government will do. Hopefully the central economic working conference will shed more light, particularly on the fiscal policy front,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
China stocks give up some gains
Jefferies analysts expect more rate cuts but steady credit growth next year, and a 2-3 trillion yuan increase in broad deficit including 4.0% deficit ratio – which investors might interpret as insufficient to achieve the targeted 2025 growth.
“Most mainland investors expect range-bound market in 2025,” they said.
The Shenzhen index was up 0.62%, the start-up board ChiNext Composite index inched up 0.08% and Shanghai’s tech-focused STAR50 index was up 0.2%?.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.20% while Japan’s Nikkei index was down 0.30%.
Chinese ADRs fell 4.34% overnight.
Source: Brecorder
