Hong Kong stocks waver as traders reassess impact of China’s stimulus measures to spur growth
- Hang Seng Index drops less than 0.1 per cent in choppy trading after changing direction more than 10 times
- Hua Hong Semiconductor, China’s second-biggest chip maker, closes 2 per cent higher after rising by as much as 15 per cent on debut in Shanghai
The Hang Seng Index dropped less than 0.1 per cent to 19,537.92 at the close, after changing direction more than 10 times. The Hang Seng Tech Index rose 0.1 per cent while the Shanghai Composite Index retreated 0.6 per cent.
Cyclical stocks including aluminium maker China Shenhua Energy and PetroChina advanced, while Hansoh Pharmaceutical Group and other drug makers dropped on concern about a widening anti-corruption drive targeting the nation’s healthcare industry.
Local stocks remained weak after a 0.6 per cent drop last week as investors cashed out following a rally spurred by a dovish tone by the government to revive growth. Concerns have returned to dog investors that the current piecemeal stimulus measures will fail to stem a slowdown in growth and the likely policies may fall short of expectations. A joint briefing by government agencies, including the central bank and the finance ministry on Friday, failed to deliver any meaningful policies, repeating what policymakers had already pledged to spur growth.
“Further upside in the market requires an improvement in expectations and easing of uncertainty, and these require more powerful growth measures and reforms,” said Fang Yi, an analyst at Guotai Junan Securities. “Some investors are still reluctant to enter the market as they are averse to uncertainty prevailing in the market.”
Investors will be closely monitoring data to gauge the strength of China’s economy, with figures on foreign trade, inflation and credit supply due in the coming week.