China, Hong Kong stocks eke out small gains as Beijing sets lowest GDP growth rate in three decades
- China sets its lowest economic growth target of 6 to 6.5 per cent for 2019
- China manufacturers to see 3 percentage point cut in value-added tax – a bigger gift than expected
Hong Kong and mainland eked out small gains on Tuesday as traders grappled with lower growth forecasts and tax cuts in China while looking for direction over a US-China trade deal.
On the mainland, the Shanghai Composite dropped at the open before making up for losses, closing ahead 0.88 per cent, or 26.67 points, to 3,054.25 by close. It has posted eight straight weeks of gains, and entered a bull market last week. Meanwhile, the CSI 300 of large caps fluctuated between gains and losses through the day, settling up 0.58 per cent, or 21.91 points, to 3,816.01.
The Hang Seng Index closed up 0.01 per cent, or 2.01 points, at 28,961.60, while the Hang Seng China Enterprises Index gained 0.06 per cent, or 7.08 points, to 11,582.61.
Markets searched for their footing all day as traders digested a full plate of news and China’s annual political summit kicked off to establish policy for the next year.
China set its lowest GDP growth rate in 30 years, of 6 per cent to 6.5 per cent for 2019, down from last year’s target of “about 6.5 per cent”, while also announcing fresh tax cuts to boost the economy.
New business growth in China slipped to a four-month low in February, highlighting a continued contraction in the services sector, according to the new Caixin China General Services Business Activity Index.