Hang Seng, China shares see tepid rebound
Hong Kong and China shares rebounded from a one-week low on Wednesday in weak volume, with investors mainly focused on a handful of stocks on hopes of an earnings turnaround.
Hong Kong and China shares rebounded from a one-week low on Wednesday in weak volume, with investors mainly focused on a handful of stocks on hopes of an earnings turnaround.
The Hang Seng Index gained 0.5 per cent to 23,044.2 points after closing on Tuesday at its lowest since May 6. The China Enterprises Index of the top Chinese listings rose 0.5 per cent.
The CSI300 of the leading Shanghai and Shenzhen A-share listings closed up 0.5 per cent at 2,506.9 points. The Shanghai Composite Index, which ended Tuesday at its lowest since May 3, inched up 0.4 per cent.
Volume in Shanghai neared 2013 lows, while Hong Kong turnover was just shy of its average in the past month as the official China Securities Journal reported that Premier Li Keqiang warned that the Beijing had limited scope to ease policy to spur the economy.
“I think people are still quite complacent in the equity markets, the official tolerance for a China growth slowdown is substantially higher than what people think,” said Hong Hao, chief strategist at Bank of Communication International Securities.
The official tolerance for a China growth slowdown is substantially higher than what people think
Growth-sensitive counters such as China Coal were among the bigger underperformers, diving 5.6 per cent in Hong Kong, while sliding 0.8 per cent in Shanghai.