China Indexes Hover at Five-Year Low After Investors Return from Mid-Autumn Holidays

Li Chen
18 Sep, 2024
Hong Kong

Stocks in Shanghai and Shenzhen struggled to regain their footings after investors returned from a 4-day weekend. 

Market sentiment was cautious ahead of the Federal Reserve's monetary policy decisions later in the day, and investors are hoping that the central bank will deliver a widely expected rate cut of at least 25 basis points. 

China's investors reassessed the latest batch of mixed economic data released over the weekend. 

Retail sales, fixed investment, and industrial output fell short of market expectations, and the property market deepened as prices for new and existing home sales declined in August. 

Moreover, investors are worried that the elevated urban jobless rate will contribute to consumer confidence weakness in the months ahead. 

The CSI 300 index tested the lows reached in January 2019, as investor confidence remained weak after the latest economic data signaled weak earnings growth in the second half. 

Stock market indexes are likely to test the lows reached in February 2016, as investors stay on the sidelines amid weakening consumer confidence and sharply decelerating earnings growth. 

 

China Stock Movers 

Mainland-focused CSI 300 index added 0.2% to 3,164.82 and traded near a five-year low, and financial markets in Hong Kong are closed for a holiday. 

The rebound in crude oil prices lifted stocks of energy producers and coal miners. 

Shaanxi Coal Industry increased 2.7% to ¥22.87, CNOOC added 0.2% to ¥26.24, and PetroChina added 0.4% to ¥7.94. 

Consumer-focused stocks struggled to advance in Wednesday's trading. 

Midea Group added 2.3% to ¥64.97, Kweichow Moutai dropped 2.4% to ¥1,272.01, and Wens Foodstuff Group fell 3.1% to ¥15.28.