SHANGHAI: China stocks were mixed on Monday as energy shares rose and consumer-related stocks dropped. Hong Kong shares were down.
China stocks end mixed as factory slump persists
For 2024, onshore shares are set to log gains for the first time after three years of losses as multiple policy stimulus measures since September lifted market sentiment.
China’s blue-chip CSI300 Index edged up 0.3% by the lunch break, while the Shanghai Composite Index lost 0.1%. Hong Kong benchmark Hang Seng was down 0.6%.
Energy shares traded onshore were up 1%, while consumer staples stocks were down 0.7%.
Small-cap stocks traded on Beijing Stock Exchange slumped 3.2%, also dragging China stocks.
The market is expected to remain active in the first half of January but external disturbances are likely to increase in the latter half, leading to a cooling of market sentiment, said a strategist at Citic Securities.
“Policy expectations are anticipated to heat up again after the Lunar New Year,” he said.
Trading volumes have declined since October, following a surge in market sentiment due to a slew of stimulus measures.
China’s finance ministry said in a statement on Monday that the proportion of new energy vehicles procured each year as government vehicles should not be less than 30% in total and 100% in urban areas to “to support and promote” their use.
The CSI Auto Index was down 0.6%. Chinese electric vehicle giants traded in Hong Kong also dropped, with Xpeng down 4.5%.
China’s central bank governor said on Sunday, quoted by state media, that the weighted average of reserve requirement ratio (RRR) for banks stands at around 6.6% after the RRR cut, and this level still leaves “some room” when compared to the central banks of major global economies.
Source: Brecorder
