China, Hong Kong fall on stock concerns Government stimulus is insufficient

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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.

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** 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)

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