China Stocks Dip on Unimpressive Reforms Amid Hong Kong Rally

China stocks edged lower on Wednesday as investors were unimpressed by the latest policy measures from the China Securities Regulatory Commission. Despite these reforms, Hong Kong stocks rebounded strongly, driven by tech and state-owned company gains. The Shanghai Composite index fell by 0.4%, while the Hang Seng index rose 2.87%.

China stocks inched lower on Wednesday, with the tech-focused STAR50 index and start-up board ChiNext leading losses, as investors were unimpressed by the top securities regulator's latest policy move. The China Securities Regulatory Commission (CSRC) published eight new measures on Wednesday to deepen STAR market reform. The measures were published after CSRC chairman Wu Qing made a speech at annual Lujiazui Forum in Shanghai.

Wu also said the watchdog will crack down on market misbehaviours. Hong Kong stocks rebounded on tech and state-owned company gains.

China Reform Holdings Corp has invested in exchange-traded funds (ETFs) tracking Hong Kong-listed, Chinese state-owned enterprises, the manager of state assets said on Wednesday, in a move to support the companies and stabilise the market. At the close, the Shanghai Composite index was down 0.4% at 3,018.05. ** The blue-chip CSI300 index was down 0.47%, with its financial sector sub-index higher by 0.29%, the consumer staples sector down 1.01%, the real estate index down 0.81% and the healthcare sub-index down 0.96%. ** The smaller Shenzhen index ended down 0.87% and the start-up board ChiNext Composite index was weaker by 1.263%. ** In Hong Kong, the Hang Seng index was up 514.84 points or 2.87% at 18,430.39. The Hang Seng China Enterprises index rose 3.45% to 6,587.77. ** Hang Seng Tech Index jumped 3.7%. ** The sub-index of the Hang Seng tracking energy shares rose 4.1%, while the IT sector rose 3.67%, the financial sector ended 2.51% higher and the property sector rose 2.37%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.28%, while Japan's Nikkei index closed up 0.23%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)