Business
Hong Kong Stocks Suffer Further Losses as Investors Anticipate Chinese Stimulus and Await Earnings
The downward trend of Hong Kong stocks continues into the week as investors anticipate China's economic stimulus and earnings reports. The Hang Seng Index dropped by 1.6 per cent, closing at 20,478.46, a further decline following last week's 2.1 per cent decrease.
The Hang Seng Index dropped by 1.6 per cent, closing at 20,478.46, furthering a 2.1 per cent decrease from the previous week. The Hang Seng Tech Index experienced a 2.4 per cent loss. Both Sands China, a Macau casino operator, and Ping An Insurance Group saw a dip before they announced their quarterly results on Monday.
The upcoming decisions of the legislative National People's Congress standing committee will be closely watched in the next few weeks for potential economic stimulus. It is anticipated that the legislature will sanction an escalation in public expenditure and an augmentation in the government bond issuance limit. The rapid growth that has boosted stocks in Hong Kong and China by over 20% since September's end has recently decelerated, as brokers await further indications from Beijing to revive economic expansion.
"China's economy remains unstable, and efforts to stabilize it will require more than a few reductions in interest rates or temporary liquidity boosts," commented Stephen Innes, the managing director of SPI Asset Management in Bangkok. "There's mounting pressure on Beijing to implement drastic fiscal changes and more significant stimulus actions. However, it's uncertain whether they will respond to this demand with the necessary intensity."
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