China’s stock market saw mixed results on Monday, with gains in computer stocks offset by losses in consumer-related shares. Traders eagerly anticipated signals from a Politburo meeting scheduled to take place at the end of the week. Hong Kong shares, on the other hand, experienced a decline, largely driven by drops in property and tech stocks.
During the morning session, China’s blue-chip CSI300 Index fell by 0.3%, while the Shanghai Composite Index increased by 0.1%. Hong Kong’s Hang Seng Index, however, dropped by 1.4%.
Computer and Artificial Intelligence (AI)-related stocks both saw gains of approximately 1.0%. Companies such as Inspur Electronic Information Industry and WUS Printed Circuit (Kunshan) witnessed notable increases of up to 10%.
Conversely, consumer staples stocks erased the gains made in the previous session, declining by 1.3%.
The property developer Country Garden and its property service arm, Country Garden Services Holdings, experienced significant drops of 5.8% and 15.5% respectively. These losses extended from the previous week due to concerns surrounding debt. Mainland property companies listed in Hong Kong also saw a slump of over 5%.
Tech shares listed in Hong Kong faced a decline as well, with Alibaba falling by 1.1%. The company announced on Sunday that it would not participate in a proposed repurchase of shares by its affiliate, Ant Group, though it would maintain its shareholding in the company.
While policymakers had introduced measures last week to boost consumption, their impact on the market remained limited. As a result, all eyes are now on the upcoming July Politburo meeting anticipated for the end of this week.
The attention on the probable meeting and statement tells you how desperate the market is for additional stimulus measures from Beijing, remarked Alvin Tan at RBC Capital Markets. He expressed doubt, however, regarding the likelihood of significant measures being implemented.
Traders and investors will closely monitor the developments from the Politburo meeting as they seek guidance on the future direction of policies impacting the Chinese market.
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