China Stocks Hold Steady Amid Economic Reforms Anticipation

China stocks remained stable on Tuesday as investors awaited details of reform measures from the Third Plenum meeting, despite weak economic data. Hong Kong shares, dragged by tech stocks, fell. China's economy showed slower growth in the second quarter, raising expectations of further stimulus measures from Beijing.

China stocks held steady on Tuesday, as investors awaited details of reform measures announced at the 'Third Plenum' meeting amid a slew of weak economic data. Hong Kong shares fell, dragged down by tech stocks.

China's economy grew much slower than expected in the second quarter, with a protracted property downturn and job insecurity stifling recovery, maintaining expectations that Beijing will need to introduce more stimulus.

The widely watched Third Plenum will outline efforts to promote advanced manufacturing, revise the tax system to curb debt risks, manage a vast property crisis, boost domestic consumption, and revitalise the private sector. Details are expected on Thursday. Shares of China's Ping An Insurance fell 5.4% in Hong Kong after the insurer raised $3.5 billion via convertible bonds.

At midday, the Shanghai Composite index was down 0.21%, while the blue-chip CSI300 index was up 0.21%. The financial sector sub-index dropped 0.54%, consumer staples rose 0.16%, real estate jumped 1.74%, and the healthcare sub-index added 0.17%. Chinese H-shares listed in Hong Kong fell by 1.34%, with the Hang Seng Index down 1.37%, and Hong Kong-listed tech giants declined 1.7%, including Trip.com falling 6.1%.

The smaller Shenzhen index declined 0.07%, the start-up board ChiNext Composite index rose 0.39%, and Shanghai's tech-focused STAR50 index went up 0.94%. Around the region, MSCI's Asia ex-Japan stock index weakened by 0.35%, while Japan's Nikkei index increased by 0.34%. The yuan was quoted at 7.2649 per U.S. dollar, 0.08% weaker than the previous close.

(With inputs from agencies.)