China Sets Date to Propose Budgetary Measures, Indexes Trade Around Flatline

Li Chen
28 Oct, 2024
Hong Kong

Stocks in China and Hong Kong lacked direction as investors awaited the release of fiscal measures early next week. 

The Hang Seng index increased 0.4% and the CSI 300 index decreased 0.2% after the legislative committee of the National People's Congress scheduled a meeting next month. 

The committee plans to meet between November 4 and 8 as lawmakers review government finances and increase the borrowing limit to finance additional measures to provide additional economic stimulus support. 

Investors are hoping that the committee will approve at least 2 trillion yen of support to revive local government financing, among other measures, to facilitate property market transactions and bolster flailing consumer confidence. 

The meeting will also review possible escalation of tariffs on China-made products exported to the U.S. after the presidential election on November 5. 

Market sentiment was also dented after the decline in profits at large industrial companies fell at a faster pace in September, the National Bureau of Statistics reported Sunday. 

Profits declined 27% from a year ago compared to a decline of 18% in August, amid a worsening economic environment and a weakening outlook. 

For the nine-month period ending in September, profit declined 3.5% from a year ago. 

Oil exploration companies declined after crude oil prices in international trading fell over 4% following the easing of tensions in the Middle East as Israel avoided wider military conflict. 

 

China Stock Movers 

The Hang Seng index increased 0.4% to 20,661.85 and the mainland-focused CSI 300 index decreased 0.2% to 3,948.17. 

PetroChina declined 2% to HK $5.93, and China Petroleum and Chemical Corp fell 1.5% to HK $4.49 following the decline in crude oil prices in international trading. 

Alibaba Group Holding gained 2.8% after the e-commerce company agreed to pay $433 million to settle a shareholder class action lawsuit in the U.S. 

BYD increased 0.8% to HK $295.0, Li Auto rose 1.1% to HK $112.50, and Xpeng advanced 8.2% to HK $45.20.