China, HK stocks fall on profit booking, property sector concerns

Chinese and Hong Kong stocks fell on Wednesday as investors booked profits after a recent policy support-led rally, while the property sector's woes were seen persisting after a liquidation petition was filed against Country Garden. ** China's blue-chip CSI 300 Index closed down 1.3%, the biggest daily decline this month, while the Shanghai Composite Index slumped 1.9%.

Chinese and Hong Kong stocks fell on Wednesday as investors booked profits after a recent policy support-led rally, while the property sector's woes were seen persisting after a liquidation petition was filed against Country Garden.

** China's blue-chip CSI 300 Index closed down 1.3%, the biggest daily decline this month, while the Shanghai Composite Index slumped 1.9%. ** Hong Kong benchmark Hang Seng Index fell 1.5%, and the Hang Seng China Enterprises Index lost 2%.

** Broader Asian stocks also eased in cautious trading ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve's easing cycle. ** Country Garden said a liquidation petition has been filed against it for non-payment of a $205 million loan, clouding its debt revamp prospects and undermining Beijing's effort to restore confidence in the property sector.

** Shares of the developer slumped 12.5%, dragging the mainland property sector listed in Hong Kong down 3.7%. ** The Hang Seng Property Index also slipped 0.6%, even after Hong Kong Financial Secretary Paul Chan said the city will cancel all buy-side property tightening measures for residential properties and waive stamp duties payable on transfer of REIT units.

** In mainland markets, shares in semiconductors and automobiles declined more than 4% each after jumping in the previous session. ** Small-cap index CSI 2000 plunged 6.8%, underperforming large and medium-cap companies.

** The market might remain rangebound in the short term after a recent rally on supportive measures, Furong Asset said in a note. ** Despite Wednesday's decline, however, the CSI 300 is up 7.3% so far this month and is set for its best month in one year, helped by authorities' measures to spur economic growth and boost market confidence.

** Market participants are awaiting authorities' next policy move as China's rubber stamp parliament - the National People's Congress - begins its annual meeting on March 5.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)