Lethargic economic numbers keep a lid on stocks in China

Shanghai — Stocks in China were largely flat on Tuesday, as investor sentiment remained muted between economic data and a readout of an agenda-setting meeting of the country’s top leaders. Hong Kong stocks fell, dragged down by property and tech shares.

China’s blue-chip CSI 300 index and the Shanghai composite index were little changed by the midday break, while the  benchmark Hang Seng index was down 0.6%.

Chinese markets could not shake their funk after last week’s mixed economic data and mild response to the central economic work conference (CEWC) readout, said Brendan Ahern, chief investment officer at KraneShares in a note.

China’s economy is expected to see more favourable conditions and more opportunities than challenges in 2024, state media said, citing officials for a detailed readout of the CEWC held last week. Macroeconomic policies will continue to provide support for economic recovery, said state media.

November data showed domestic demand taking another step down, with retail sales growth almost halving and most major housing indicators deteriorating, said analysts at Barclays.

Mainland sectors were mixed, with semiconductors up 1.1%, while healthcare and real estate declined 1.3% and 1.5%, respectively. Shares of mainland property developers were down 2.6%, with Country Garden Services down nearly 10%.

Tech stocks traded in Hong Kong were down 0.5%, with Chinese food delivery giant Meituan slumping 6.1% to a near four-year low.

Reuters