Hong Kong shares up on credit data surprise; China stocks slip
China's new bank loans jumped more than expected in June from the previous month, helped by central bank efforts to support the economy as a post-pandemic recovery fades.
CHINA: Hong Kong stocks rose on Wednesday as stronger-than-expected credit figures in June partially lifted sentiment, though Chinese stocks edged down as investors waited for a bigger stimulus. ** The Shanghai Composite Index dipped 0.13% despite upbeat credit data; China's blue-chip CSI 300 Index were largely flat.
** Hang Seng Index advanced 1.15%, and Hang Seng China Enterprises Index gained 1.61%.
** China's new bank loans jumped more than expected in June from the previous month, helped by central bank efforts to support the economy as a post-pandemic recovery fades.
** However, BofA Securities analysts said in a note Tuesday that they doubt expanding credit supply alone will be effective in lifting growth momentum significantly at a time when confidence of both households and private sector remains weak. ** "In our view, the downside risks on growth calls for more timely and effective easing measures to boost domestic demand," they said.
** The National Development and Reform Commission (NDRC), China's top economic planner, said on its official WeChat account on Tuesday they have visited companies including Alibaba , Tencent and Meituan recently, and praised the leading role the companies are taking in innovations and high-quality development. ** The tone of support for China's big tech companies further boosted the performance of tech stocks. Hang Seng Tech Index jumped 2.5% by midday, set for a three-day winning streak.
** Among China A-shares, telecommunications stocks dropped 1.9% to lead the decline, as China is reported to lay down AI rules with emphasis on content control. ** On geopolitical side, Canada launched separate investigations into Nike Canada (NKE.N) and Dynasty Gold (DYG.V) to probe allegations that they used or benefited from forced Uyghur labor in their supply chains and operations in China.