Chinese Stocks Resilient Amid Stimulus and Tensions

Chinese and Hong Kong stocks experienced fluctuations due to geopolitical tensions and economic uncertainties. While the indices initially dropped, they managed to recover slightly following China's stimulus measures. Analysts highlight the relevance of the upcoming 2025 fiscal budget to gauge the effectiveness of such efforts.

Despite a turbulent day on the trading floor, Chinese and Hong Kong stocks made a resilient comeback on Wednesday, spurred by recent stimulus measures put forth by Beijing. These efforts helped curb initial losses caused by global geopolitical tensions and economic uncertainty.

The CSI 300 index initially plunged 1.7% during trading, yet showed strength to close only 0.2% lower. Similarly, in Hong Kong, the Hang Seng Index stemmed its early session losses, closing 0.9% down and continuing a three-day losing streak, the lowest since late September. Key sectors, including semiconductors, faced pressures, affecting major players like Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor.

Beijing's new consumer support measures are a decisive factor in driving domestic demand, especially for household electronics. However, experts, including those from Goldman Sachs, emphasize the importance of the forthcoming 2025 fiscal budget in assessing the true impact of these fiscal moves.

(With inputs from agencies.)