China, HK shares rise on stimulus hopes despite global gloom
China's blue-chip index is on track for a third straight weekly gain, while tech shares lifted the Hong Kong benchmark despite Wall Street's selloff, as China's stimulus and easing of COVID-19 curbs offset worries about U.S. monetary tightening.
China's blue-chip index is on track for a third straight weekly gain, while tech shares lifted the Hong Kong benchmark despite Wall Street's selloff, as China's stimulus and easing of COVID-19 curbs offset worries about U.S. monetary tightening. ** The CSI300 index rose 0.3% by the lunch break on Friday, while the Shanghai Composite Index was roughly flat.
** Hong Kong benchmark Hang Seng rose 0.8%, while the Hang Seng Tech Index gained 1.4%. ** In contrast, world stocks are headed for their worst week since the markets' pandemic meltdown in March 2020, as investors are worried about growth in the face of global rate hikes.
** China stocks, which suffered heavy selling during the first four months of the year, have rebounded over the past month as Beijing unveiled a slew of measures to stimulate a COVID-19-hit economy. ** The city of Beijing on Thursday declared an initial victory in its latest battle with COVID-19. Shanghai ended its two-month virus lockdown in early June and has unveiled a slew of investment projects as the economy re-opens.
** Goldman Sachs said in a report it is "overweight China as policy turns more accommodative and sequential growth momentum recovers from low levels." ** China's economy showed signs of recovery in May after slumping in the prior month as industrial production rose unexpectedly, but consumption was still weak.
** The cabinet has pledged to increase annual tax cuts, including VAT credit rebates, to 2.64 trillion yuan ($393.99 billion) from an initial 2.5 trillion yuan, to help spur growth. ** China's shares in resources, food & beverage, and consumer sectors rose, offsetting losses in financials and real estate.
** In Hong Kong, financial and property shares rose, but energy and industrial sectors weakened. ($1 = 6.7007 Chinese yuan)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)