SHANGHAI: China and Hong Kong stocks started lower on Thursday as investors priced in heightened tensions around security and trade in a second Donald Trump presidency, with losses contained by expectations from a key Chinese leadership meeting.
China’s blue-chip CSI300 Index opened down 0.9%, while the Shanghai Composite Index lost 0.7%. Hong Kong benchmark Hang Seng was down 0.7%.
The drop was led by exporters.
Stocks are expected to extend their decline in the days ahead as markets await US Congressional election results and brace for a Republican sweep which could give Trump greater sway over taxes and tariffs.
Hong Kong’s Hang Seng, which is more indicative of foreign investor sentiment, fell 2.3% on Wednesday.
The Hang Seng China Enterprises Index opened 0.3% weaker, after it fell 2.6% on Wednesday.
China, Hong Kong stocks rise on signs of economic improvement; US election on tap
A threat by Trump, who has been elected as the next US president, to impose 60% tariffs on US imports of Chinese goods, poses major growth risks for the world’s second-largest economy.
Meanwhile, investors’ attention shifted to the National People’s Congress Standing Committee meeting which concludes on Friday.
Any stimulus surprise from the meeting will likely help lift market sentiment in China stocks.
Source: Brecorder
