China Stocks Plummet Amid Economic Concerns Post-Politburo Meeting

China's blue-chip stocks and Hong Kong shares fell for a second consecutive day amid growing pessimism over China's economic outlook. The Politburo meeting's outcome disappointed investors, failing to provide detailed economic support measures. Energy stocks led the decline, influenced by falling oil prices.

China's blue-chip stocks saw a downturn for the second consecutive day on Tuesday, with Hong Kong shares also experiencing a drop, as concerns over China's economic outlook deepened. This followed a lukewarm reaction to the outcomes of the latest Politburo meeting.

The Politburo, the ruling Communist Party's top decision-making body, committed to pursuing a 'proactive' fiscal policy while reiterating the necessity of a 'prudent' monetary framework. However, the meeting did not offer detailed plans for boosting the economy, leaving investors anxious.

'The government recognizes that domestic demand is weak,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. 'The question is whether fiscal policy will change significantly in the second half of the year to better support economic growth.' Energy stocks led the decline, with the CSI energy index and mainland oil and gas stocks listed in Hong Kong falling 2.7% and 2.9%, respectively, following an overnight drop in oil prices.

In the property sector, Hong Kong real estate shares were down 2.8% after disappointing interim results from local commercial property giants. The Shanghai Composite index closed down 0.43% at 2,879.30, with the blue-chip CSI 300 index falling 0.63%. Financials, consumer staples, real estate, and healthcare stocks also fell between 0.2% and 0.65%.

The Shenzhen index ended down 0.17%, and the start-up board ChiNext Composite index dropped 0.289%. In Hong Kong, the Hang Seng index fell 235.43 points or 1.37% to 17,002.91, and the Hang Seng China Enterprises index decreased by 1.54% to 5,986.69. The Hang Seng energy index lost 2.8%, the IT sector dipped 1.3%, and the financial sector closed 0.67% lower, while the property sector declined by 2.75%.

Around the region, MSCI's Asia ex-Japan stock index was down 0.41%, while Japan's Nikkei index closed up 0.15%.

(With inputs from agencies.)