Markets React: Hong Kong Shares Dip Amid Debt Relief Disappointment

Hong Kong shares dropped to a three-week low as China's debt-relief package underwhelmed investors, despite a rally in semiconductor stocks boosting Chinese markets. A 10 trillion yuan package aimed to ease government financing but lacked direct consumer stimulus, disappointing market expectations.

Hong Kong shares experienced a downturn, hitting a three-week low on Monday as China's local government debt-relief measures did not meet investors' expectations for economic support. However, semiconductor stocks saw a surge, nudging Chinese markets marginally upward.

The semiconductor boost followed reports that the U.S. ordered chipmaker TSMC to halt advanced chip shipments to Chinese clients, igniting hopes for governmental support. Consequently, Semiconductor Manufacturing International Corp saw a stock price rise of 4.7%, reaching a record high, while the CSI Semiconductor Index marked a three-year peak.

Despite a 10 trillion yuan debt relief package that aimed to stabilize economic growth, the lack of direct consumer stimulus left Hong Kong markets uninspired. Analysts suggest further measures are needed to achieve China's GDP growth goals amidst a real estate slump and declining confidence.

(With inputs from agencies.)