China stocks rebound on strong credit expansion, Hong Kong slips
China stocks rebounded sharply on Wednesday after data showed the country's loan growth beat expectations, while Hong Kong's stock index hovered around 11-year lows amid concerns of China's zero-COVID policy and overseas inflation and recession woes. ** The blue-chip CSI 300 Index and the Shanghai Composite Index both closed up 1.5%.
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China stocks rebounded sharply on Wednesday after data showed the country's loan growth beat expectations, while Hong Kong's stock index hovered around 11-year lows amid concerns of China's zero-COVID policy and overseas inflation and recession woes.
** The blue-chip CSI 300 Index and the Shanghai Composite Index both closed up 1.5%. ** The Hang Seng Index finished down 0.8%, while the Hang Seng China Enterprises Index fell 0.7%.
** New bank lending in China nearly doubled in September from the previous month and far exceeded expectations after the central bank acted to spur an economy weakened by a property crisis and a resurgence of COVID-19 cases. ** Chinese chip makers jumped 4.2%, and new energy shares climbed 3.8% to lead the gains.
** China will persist with its COVID policies to avoid losing control over local coronavirus outbreaks, the official newspaper of the ruling Communist Party warned in commentary for the third straight day. ** "Lying flat is not to be advised, and to win (the COVID battle) while lying flat is not possible," People's Daily wrote.
** Big Chinese cities, including Beijing and Shanghai, have tightened preventive measures in recent days as domestic case numbers surge. ** Tourism-related companies and food & beverage shares retreated roughly 0.5% each.
** The decline in consumer services-related shares indicated that pandemic control had become the main worry for investors, said Wang Mengying, a stock index futures analyst at Nanhua Futures. ** "China's growth recovery is still facing headwinds from COVID uncertainty, a sluggish consumption recovery and signs of slower external demand. Thus, we think further policy support is still needed on multiple fronts to help revive activity and support an ongoing recovery," said Erin Xin, Economist of Greater China at HSBC in a note.
** In Hong Kong, tech giants edged down 0.3%, but casino operators slumped 3.5% and mainland developers declined 2.4%.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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