Hong Kong shares snapped a four-day losing streak in a mild rebound on Monday, with mainland markets tepid as investors remained cautious after new data pointed to an uncertain pace of recovery in the world’s second-largest economy.
A report in the People’s Daily that China may not launch new stimulus amid concerns of a debt buildup and overcapacity also weighed on the markets, with property stocks slipping.
The Hang Seng Index rose 0.3 per cent from its four-week low to 22,686.05 points. The China Enterprises Index of the top Chinese listings in Hong Kong gained 0.3 per cent.
Turnover in Hong Kong was at its lowest this year.
The Shanghai Composite Index ended up 0.2 per cent at 2,293.1 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings inched up 0.1 per cent.
China’s industrial profits growth quickened in April from the previous month, though the government noted that the pickup was due mainly to a low comparative base, indicating that the economy still faces slack domestic and external demand.
“The investors should avoid bottom-fishing, particularly in those policy-related stocks,” said Castor Pang, Core Pacific-Yamaichi Securities’ head of research.