China and Hong Kong Stocks Dip Amid Awaited Stimulus

China and Hong Kong stock markets closed lower as investors awaited economic stimulus from Beijing. The CSI300 Index and Hang Seng Index both showed losses, with concerns about corporate earnings and weak domestic demand affecting market sentiments. Key sectors like real estate and AI shares declined significantly.

China and Hong Kong stock markets wrapped up the week with declines, as investors cautiously awaited stimulus measures from Beijing. Both China's blue-chip CSI300 Index and Shanghai Composite ended down approximately 1.3%, while Hong Kong's Hang Seng dropped 0.9%.

The CSI300 Index experienced a 1.1% dip this week, with the Hang Seng falling by 3.5%. Analysts expect policymakers to gauge the level of stimulus needed in 2025, depending on tariff impacts, aiming to achieve GDP growth targets. Investor sentiment remains bearish due to underwhelming corporate earnings and weak domestic demand.

Notably, the onshore market saw significant declines in real estate and AI-related shares, dropping 2.1% and 2.6%, respectively. In corporate developments, Country Garden proposed a debt-cutting deal to offshore creditors, while Vanke's onshore shares dropped 3.7%. The central bank's suspension of treasury bond purchases triggered a yield jump, amid currency defense speculation.

(With inputs from agencies.)