SHANGHAI – China and Hong Kong stocks fell on Wednesday after a recent recovery, as investors worried that the policies announced by Beijing were insufficient to revive the coronavirus-ravaged economy.
** China’s bluechip index CSI300, which bounced more than 6% from its low on April 27, fell 0.6% during the midday break. The Shanghai Composite Index lost 0.4%. In Hong Kong, the benchmark Hang Seng Index fell 0.6%.
** In two years, the market has revived with signs that China is creating more stimulus to help the economy, which has been devastated by the country’s largest Kovid-19 outbreak.
** Chinese Vice-Premier Liu He on Tuesday calmed the nerves of the technology sector, saying that the government has supported the development of the sector and the universal list for technology companies.
** The Hang Seng Tech Index, which jumped about 14% last week in anticipation of the meeting, fell 1.7% on profit margins due to lack of detailed support.
** Property shares, which have revived signs of policy easing, also fell in April’s depressing data.
** “Housing prices have dropped in more cities in April. The sector is going through a crisis, ”said Zhiwei Zhang, president of Pinpoint Asset Management and chief economist.
** “Government policy has been more supportive but not irresistible … It is not clear when the housing sector will recover.”
** In his mid-year outlook, Morgan Stanley said he expects China’s 2022 growth target to fall below 5.2%, signaling that the pullback from the CVD-free strategy is “only partially offset by broad-based facilitation”. Politburo meeting.
** Sentiment eased further after foreign investors showed their holdings in Chinese yuan-denominated bonds for the third consecutive month in April, the longest stretch on record.
** China’s STAR50 index, home of Chinese chipmakers and high-end manufacturing companies, rose 0.4%. (Reporting by Shanghai Newsroom; Editing by Rashmi Ich)