China Indexes Struggle In Cautious Trading

Li Chen
18 Apr, 2024
Hong Kong

Stocks in Shanghai and Hong Kong diverged for the second day in a row this week as investors grappled with multiple headwinds amid optimism about corporate results. 

Market sentiment was cautious in China after the latest batch of economic data confirmed a fragile recovery. 

Chinese policymakers are betting on technology and manufacturing to drive exports higher to overcome domestic market weakness primarily linked to weak consumer demand and a protracted property market slump. 

China's transition from property market-led economic growth to manufacturing-driven expansion is not without its own challenges, as many sectors face overcapacity, falling margins, and intense competition. 

Moreover, investors were on the sidelines after the U.S. Fed's hawkish stance on rate outlook and escalating tensions between Iran and Israel stoked fears of crude oil supply disruptions. 

In stock trading, casino and insurance companies were among the leading gainers, and tech stocks were among the leading decliners. 

The CSI 300 index advanced 0.6% to 3,587.11, and the Hang Seng index gained 1.4% to 16,469.29. 

CNOOC and Petro China declined 2% after crude oil prices stayed near five-week highs, denting companies refining margins. 

JD.com, Baidu.com, Alibaba Group, and Tencent Holdings traded between a loss of 0.5% and an increase of 1.5%. 

Longfor Group, China Vanke, China Resource Land, and Henderson Land advanced between 0.4% and 1.5%. 

Sands China and Galaxy Entertainment Group gained around 1.8% in active trading in the hopes of rising tourism spending. 

Bank of China, ICBC, Agriculture Bank of China, China Communication Bank, and China Construction Bank advanced between 0.1% and 2.5%.