China, Hong Kong stock markets buoyed by trade hopes, dismiss data showing slower GDP growth on mainland
- Traders expected China’s quarterly GDP to rise by 6.4 per cent, so were unfazed
- Instead, traders focused on sense of progress toward ending US-China trade war
Hong Kong and mainland stocks edged up Monday as optimism over US-China trade relations won over fresh data showing that China’s GDP grew at its slowest rate since the global financial crisis.
The Hang Seng Index closed up 0.39 per cent, or 105.73 points, to 27,196.54, while the Hang Seng China Enterprises Index gained 0.72 per cent, or 76.08 points, to 10,713.05.
On the mainland, the Shanghai Composite rose 0.56 per cent, or 14.50 points, to 2,610.51. The CSI 300 ended up 0.55 per cent, or 17.47, to 3,185.64.
China’s GDP rose 6.4 per cent in the fourth quarter of 2018 from a year earlier, compared with 6.5 per cent in the previous quarter, marking the slowest rate since 2009. Figures were in line with estimates.
For the full year, the economy expanded 6.6 per cent, its weakest since 1990 but higher than government targets of 6.5 per cent. On Friday, the statistics bureau revised full year growth for 2017 from 6.9 per cent to 6.8 per cent.