China stocks edge up on stimulus hopes, Hong Kong shares slide

From XM Global Limited: 2024-07-15 01:12:41

China stocks edged up as weak GDP spurs stimulus hopes, with CSI 300 gaining 0.2% while Hong Kong’s Hang Seng Index lost 1.4%. The economy grew 4.7%, its slowest since 2023, prompting pressure on the Chinese government to boost confidence through monetary policy. The ongoing leadership gathering seeks to inject confidence in the economy.

Hong Kong shares fell following weaker-than-expected data and concerns of Trump winning U.S. elections. Tech giants in Hong Kong slumped 2.4%, while mainland property developers plunged 2.6%. Analysts point to the need for further short-term rate cuts to support the economy amid record low sentiment levels and conflicting goals.

The economy’s uneven growth, with industrial output surpassing domestic consumption, raises deflationary risks. The ongoing leadership gathering may focus more on boosting growth while cutting debt, with potentially little progress in implementing structural change. Concerns on China’s export-driven growth are elevated due to increasing trade protectionism and political uncertainty in global financial markets.



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