Bargain Hunter Returned to China Markets with Modest Expectations

Li Chen
25 Jun, 2024
Hong Kong

Bargain hunters returned in search of attractive stocks after market indexes in Hong Kong and Shanghai declined for three days in a row. 

The CSI 300 and the Hang Seng indexes retained upward bias, and investors looked for bargains in the technology, banking, and real estate sectors. 

Investors have been on the defensive in the last two months amid a weak economic outlook and a lack of earnings visibility after indexes ran up in the first quarter. 

Moreover, market confidence has been waning after policymakers failed to announce substantial and deep reforms that could improve consumer and investor confidence. 

Foreign investors have been net sellers of Chinese stocks this month as investors lose confidence that Beijing policymakers have run out of options for reviving market confidence amid a fragile economic recovery and persistent real estate market decline. 

Investors are looking forward to the Communist Party's third plenum next week, but most investors are not hoping for concrete measures to be announced after the meeting. 

Chinese premier Li Qiang, in a speech delivered at an international forum in the northeast city of Dalian, reiterated the annual economic growth target of 5%. 

Premier Qiang also dismissed talks of industrial overcapacity and highlighted the risks of economic decoupling from the West. 

 

China Stock Movers 

The CSI 300 index decreased 0.2% to 3,471.75 and the Hang Seng Index rose 0.5% to 18,124.80. 

China Resources Land jumped 3.5% to HK$27.40, China Vanke jumped 2.2% to HK$4.97, and Longfor Group jumped 3.5% to HK$11.54. 

Li Auto edged up 0.7% to HK$70.50, BYD gained 1.3% to HK$240.60, and Xpeng added 0.6% to HK$30.60. 

Tencent Holdings jumped 0.4% to HK$382.0, Alibaba Group Holdings advanced 0.7% to $72.75, and Meituan jumped 2% to HK$117.80.