Chinese Markets Steady Amid Economic Uncertainty

Chinese stocks showed mixed performance as industrial profits in November continued to decline, although at a slower pace than October. Holiday-thinned trading saw the Shanghai Composite index gain slightly, while Hong Kong's Hang Seng remained flat. Analysts expect continued volatility until new policy measures are introduced in February.

On Friday, Chinese stocks reflected mixed outcomes as new data revealed that industrial profits were still under pressure. The Shanghai Composite index experienced a slight increase by 0.1% to 3,400.14 points, reaching its highest mark since mid-December, while the CSI 300 index ended 0.2% lower.

Meanwhile, Hong Kong's Hang Seng Index closed with little change amid thin holiday trading, though it recorded a 2% weekly gain. Concerns linger due to weak economic data showing a 7.3% drop in industrial profits for November compared to last year. Analysts suggest market stability will depend on stronger policy support.

The future outlook remains cautious following the Central Economic Work Conference, as new macroeconomic policies are not expected until February. Nevertheless, China's markets gained this week on news of substantial fiscal stimulus plans for 2025, including the issuance of special treasury bonds worth 3 trillion yuan.

(With inputs from agencies.)