China and Hong Kong stocks fall due to insufficient government stimulus
Stocks in China and Hong Kong fell on Wednesday after a recent rally as investors feared Beijing’s announced policies may be insufficient to reinvigorate the coronavirus-battered economy. **China’s CSI300 bluechip index, which had rebounded more than 6% from the April 27 low, fell 0.6% at the lunch break. The Shanghai Composite Index lost 0.4%. In Hong Kong, the benchmark Hang Seng index fell 0.6%.
** The market had rebounded on signs China was rolling out more stimulus to help an economy ravaged by the country’s biggest Covid-19 outbreak in two years. ** Chinese Vice Premier Liu He soothed nerves in the tech sector on Tuesday, saying the government supports the development of the sector and public listings of tech companies.
** The Hang Seng Tech index, which had jumped about 14% over the past week ahead of the meeting, fell 1.7% on profit taking in the absence of action detailed support. **Real estate stocks, which also rebounded on signs of policy easing, also fell on dismal April data.
** “Housing prices fell in more cities in April. The sector is going through a crisis,” said Zhiwei Zhang, president and chief economist of Pinpoint Asset Management. ** “Government policy has become more supportive, but not overwhelmingly… It’s unclear when the housing sector will rebound.”
** In its mid-year outlook, Morgan Stanley said it expects China’s growth in 2022 to be below the 5.2% target, the drag on the COVID-19 strategy. zero “only partially offset by widespread easing” as noted in the Politburo meeting. **Sentiment dampened further after data showed foreign investors reduced their holdings of yuan-denominated Chinese bonds for the third consecutive month in April, the longest such period on record.
** China’s STAR50 index, which includes Chinese chipmakers and high-end manufacturing companies, rose 0.4%.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)