China shares lower, Hong Kong up on Fed rate cut hopes

From Business Recorder: 2024-07-04 04:46:49

China’s shares ended lower while Hong Kong stocks were buoyed by bets of a Federal Reserve rate cut. The Communist Party promised to implement measures to bolster growth and stabilize the market. Investors remain cautious as the trade war between the US and China continues to escalate, impacting global markets.

The Chinese government has rolled out a plan to boost the economy amid growing trade tensions with the US. Beijing will lower import tariffs on a wide range of goods and improve market access for foreign companies. These measures are aimed at increasing consumption and stabilizing economic growth in the country.

Hong Kong stocks rallied as investors bet on a potential interest rate cut by the Federal Reserve. The Hang Seng Index surged while mainland Chinese shares suffered losses. Market analysts believe that the Fed’s dovish stance will provide support for global equity markets, including in Hong Kong.

Investors are closely monitoring the US-China trade negotiations as tensions between the two countries escalate. The recent decision by the US to blacklist Chinese technology companies has added further uncertainty to the situation. Analysts warn that a prolonged trade war could have a negative impact on global economic growth.



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