China Stocks Face Uncertainty Amid Key Leadership Meeting and Trade Tensions
China stocks remained directionless as investors awaited policy news from a key leadership meeting in Beijing. Trade tensions with the U.S. added to market jitters. The CSI 300 Index edged up slightly, while semiconductor firms dropped. Market watchers also eyed the potential impact on foreign policy if Donald Trump wins the U.S. presidency.
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China's stock market showed mixed signals on Thursday, with investors hesitating as they awaited crucial policy announcements from a key leadership gathering in Beijing, set to conclude later in the day. Adding to the trepidation were escalating trade tensions with the United States, which pressured broader Asian equities.
By midday, the CSI 300 Index had edged up by 0.1%, while the Shanghai Composite Index dipped 0.1%, and Hong Kong's Hang Seng Index gained 0.2%. Investors are pinning their hopes on the four-day plenum to reinvigorate the economy, particularly after the second-quarter GDP failed to meet forecasts due to a prolonged downturn in the property sector and job concerns.
However, conflicting aims—such as boosting growth while reducing debt—might hinder substantial policy shifts. "It's difficult for the government to launch anything drastic," said Steven Leung, executive director at UOB Kay Hian in Hong Kong. He added that some support for the property sector or technology initiatives could be anticipated.
(With inputs from agencies.)
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