China, Hong Kong stocks follow Wall Street gains on stimulus
Stocks in mainland China and Hong Kong trailed their global peers higher on Wednesday, while an official pledge to support economic recovery from the COVID-19 fallout also lifted market sentiment. **At the lunch break, the Shanghai Composite index gained 0.67% to 3,301.25 points, while the blue chip CSI300 index rose 0.38% to 4,285.65 points.
** The Financials sub-index edged up 0.28%, the Consumer Staples sector climbed 0.41% and the Health Care sub-index jumped 1.03%. **Shenzhen’s smaller index rose 0.58%, the start-up ChiNext Composite index rose 0.69% and Shanghai’s tech-focused STAR50 index climbed 1.62% .
** In Hong Kong, the benchmark Hang Seng index hit an over-week high and gained 1.74% to 21,020.61 midday as Hong Kong-listed Chinese H-shares rose of 1.82%. ** Mainland and Hong Kong markets followed a global rally as strong US corporate earnings and the expected resumption of Russian gas supplies to Europe helped lift sentiment.
**Chinese Premier Li Keqiang said on Tuesday that the recovery of China’s economy from a recent bout of weakness was not yet firmly established and that “thorough” efforts were needed to stabilize overall economic performance, according to reports. official media. **Earlier in the session, China kept its benchmark lending rates for corporate and household loans unchanged as policymakers took a cautious approach amid signs of economic recovery, growing domestic inflationary pressures and aggressive global rate hikes.
** “With China beginning its slow exit from recession, we have shifted exposure to equities from slowing developed market economies to at least one stabilizing Chinese domestic economy,” said Norman Villamin, CIO Wealth Management at Union Bancaire Privée (UBP). ** “After exiting Chinese markets last year, we have started to make a comeback as economic activity appears to have bottomed out with further recovery likely. Additionally, Chinese equities offer an edge diversification in the context of a global portfolio due to their low correlation to other markets.”
**One of the major underperformers was the real estate sector as it continued to be pressured by fear caused by the proliferation of threats from homebuyers to withhold payments for stalled projects. ** The real estate index fell 0.23% at midday, while mainland developers listed in Hong Kong fell 0.49%.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)