HONG KONG: China and Hong Kong stocks rebounded from recent lows on Wednesday, as latest data showed that declines in industrial profits narrowed, while traders placed renewed bets that Beijing will roll out more supportive policies to counter tariff risks.
China stocks edge down, HK flat
At the midday break, the Shanghai Composite index was up 0.52% at 3,276.58, after losing as much as 0.1% to near a six-week low earlier in the session. The blue-chip CSI300 index was up 0.93%.
The defence sector rallied 2.4% while the semiconductor index jumped 1.5%.
Stocks related to Huawei concept also edged up to erase earlier losses, with electronics product manufacturer Luxshare Precision rising 5% and peer BOE Technology adding 1.7%.
The Hang Seng Index in Hong Kong was up 0.42% at 19,239.85, after briefly touching a two-month low. Chinese H-shares listed in Hong Kong, the Hang Seng China Enterprises Index rose 0.37% to 6,876.9.
Earlier losses in both onshore and offshore markets were erased, after industrial profits fell at a slower pace.
Industrial profits in October fell 10% from a year earlier, better than a 27.1% slump in September, National Bureau of Statistics (NBS) data showed.
Meanwhile, worries stoked by US President-elect Donald Trump’s fresh tariff on China also eased, as traders are looking for more actions from Beijing to offset the potential tariff risks.
“With the potential threat of tariff hikes in 2025, it’s likely China’s policymakers would come up with further stimulus packages to counter downward economic growth pressure from domestic cyclical weakness and increased external uncertainty,” said Vis Nayar, chief investment officer at Eastspring Investments, Singapore.
“There remains plenty of scope for China to surprise the markets.”
Source: Brecorder
