China stocks rise on signs of steadying economy, HK dips

21-Jan-2020 Intellasia | Reuters | 6:02 AM Print This Post

China stocks rose on Monday on signs of a stabilising domestic economy and increasing expectations of government stimulus to aid growth, while Hong Kong shares dipped.

** The CSI300 index rose 0.5 percent to 4,176.50 by the end of the morning session, while the Shanghai Composite Index gained 0.4 percent to 3,088.59.

** In Hong Kong, the Hang Seng index dropped 0.4 percent to 28,942.57, while the Hong Kong China Enterprises Index lost 0.2 percent to 11,401.63.

** China is confident of maintaining steady industrial growth this year despite big pressures facing the sector, minister of Industry and Information Technology Miao Wei said on Monday.

** His remarks came after China’s industrial output topped expectations in December by growing 6.9 percent from a year earlier, the strongest pace in nine months.

** Investors also expect more government stimulus ahead after China’s economic growth cooled to a near 30-year low of 6.1 percent in 2019 amid a bruising trade war with the United States.

** Among shares, hotel operators and tourism firms slumped following news that an outbreak of a new coronavirus in China was spreading to other cities, raising concerns around its containment and clouding travel plans of millions of Chinese for Lunar New Year holiday.

** BTG Hotels Group Co and Shanghai Jin Jiang International Hotels Development Co tumbled over 7%, while tourism company Songcheng Performance Development Co slumped over 8%.

** Shares of drugmakers and facial mask producers such as Jiangsu Sihuan Bioengineering Co and Shandong Lukang Pharmaceutical Co jumped.


Category: Hong Kong

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