China's Market Indicators: Mixed Signals Amid Manufacturing Growth and Investor Caution

China's stock markets saw mixed results due to growth in manufacturing activities and anticipation of new stimulus policies. Property shares led the gains. Investor sentiment dipped after a recent rally, focusing now on forthcoming political meetings and international economic conditions impacting fiscal policy and investment strategy.

China's stock markets closed with slight gains on Thursday, driven by the property sector, as the nation's manufacturing activities showed growth in October. Traders are keenly observing for more policy insights from the government's upcoming leadership meeting, while Hong Kong shares dipped slightly.

The blue-chip CSI300 Index remained mostly unchanged, with the Shanghai Composite Index gaining 0.4%. Meanwhile, Hong Kong's Hang Seng Index saw a marginal decline of 0.1%. A recent survey revealed that China's manufacturing expanded in October for the first time in six months, signalling a potential boost in economic momentum as monetary and fiscal policies become more accommodating.

Despite a cooling in investor enthusiasm since mid-October, property shares marked notable increases in both onshore and offshore markets. As analysts anticipate shifts in fiscal policy, attention is now focused on China's National People's Congress Standing Committee meeting and the U.S. elections, determining the direction of future policies. Additionally, China advises automakers to exercise caution with European investments following tensions over tariffs.

(With inputs from agencies.)