China Stocks Shine Despite Hong Kong Slump
China stocks ended the week with a seven-session winning streak, while Hong Kong shares marked their biggest weekly loss in nearly two months. China's blue-chip CSI300 Index and the Shanghai Composite Index posted gains, with tech shares leading. However, the lack of policy support for the property sector disappointed some investors.
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China stocks ended the week on a high note, registering a seven-session winning streak following a key leadership meeting that concluded on Thursday. Meanwhile, Hong Kong shares suffered their biggest weekly loss in nearly two months.
China's blue-chip CSI300 Index closed up 0.5% on Friday, marking gains for a seventh consecutive session, while the Shanghai Composite Index rose by 0.2%. In stark contrast, Hong Kong's Hang Seng benchmark dropped 2.1%, registering a notable decline.
Chinese officials acknowledged the comprehensive list of economic goals outlined at the recent Communist Party meeting, noting that many complex challenges lie ahead in policy implementation. A more detailed policy document is expected to be released in the upcoming days.
Analysts at UBS noted market anticipation for a detailed final document next week and the subsequent Politburo meeting for specific policy measures. For the week, the CSI300 index rose 1.9%, while the Hang Seng index fell 4.8%, marking its most significant weekly loss since late May.
Tech shares spearheaded gains in China, with the CSI Info Tech index up 1.4%. However, the absence of new policy support for the struggling property sector dampened investor sentiment, leading to a decline in developers' shares in both China and Hong Kong by 2% and 4.2%, respectively. Additionally, tech giants traded in Hong Kong saw a 2.1% drop.
(With inputs from agencies.)