Shanghai stocks flat, HK ticks higher on hopes of fiscal boost
SHANGHAI: The Shanghai stock benchmark was largely unchanged on Friday, while Hong Kong shares inched higher, as investors were holding out hope for more fiscal support at home even as they awaited a fresh catalyst from overseas markets following a recent global bond selloff. At the midday break, the Shanghai Composite index was flat at 3,903.81 points, while the blue-chip CSI300 index climbed…
On Friday, the Shanghai stock benchmark remained largely unchanged, while Hong Kong shares experienced a slight increase, as investors maintained hopes for additional fiscal support within the country amidst anticipation of new overseas market catalysts following a recent global bond selloff. At noon, the Shanghai Composite index held steady at 3,903.81 points, while the blue-chip CSI300 index rose by 0.52%. The ChiNext Composite index saw a 1.2% increase, and Shanghai's tech-focused STAR50 index edged up by 0.1%.
Wee Khoon Chong, an APAC macro strategist at BNY, noted that China continues to struggle for traction, despite Finance Ministry comments suggesting potential additional fiscal support in the second half of the year. The lackluster response indicates that policy expectations have already been elevated, and investors are still seeking clearer evidence of robust domestic demand before increasing risk exposure.
Vice Finance Minister Liao Min announced on Friday that China will implement further fiscal policy measures in response to economic developments, as growth slows in the world's second-largest economy. July's data, ranging from industrial output, retail sales, to credit lending, revealed ongoing weak domestic demand in the second-largest economy.
Among the top gainers in morning deals were non-ferrous metal shares, with a sub-index rising by 1.9%, driven by higher gold prices resulting from a weaker dollar and the US Treasury's bond buyback move.
In Hong Kong, the benchmark Hang Seng index rose by 0.7%, while the city's tech shares gained 0.5%. Market participants will soon turn their attention to Federal Reserve Chairman Kevin Warsh's speech at the central bank's Jackson Hole symposium next week for insights on how he intends to address the ongoing issue of elevated inflation. The US Treasury's unexpected bond buyback, however, did not alleviate lingering concerns about inflation and expanding government debt.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
