China Investors Lose Faith In Previously Announced Fiscal Measures Amid Lack of Details

Li Chen
17 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong struggled to advance amid a lack of details about the fiscal measures. 

The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index gained 0.3% as investors erased the previous week's gains in two days of trading this week.

Investor enthusiasm waned after the economic work conference failed to provide additional details about the implementation plans of the previously announced fiscal measures in late September and early October. 

Over the last six weeks, the Hang Seng index has lost about 15% from the recent peak after policymakers failed to show urgency to announce implementation plans to revive property market transactions and consumer confidence. 

Market sentiment improvement was short-lived after a report suggested that the Chinese government is likely to expand its deficit to 4% of gross domestic product in 2025 from 3% in the current year. 

Investors are anticipating that the Chinese government will issue long-term bonds worth more than three trillion yuan to finance the proposed fiscal measures. 

 

China Stock Movers 

The Hang Seng index dropped 0.4% to 19,728.82, and the CSI 300 index edged higher 0.3% to 3,923.0. 

Alibaba Group Holding Ltd. declined 1.4% to HK $83.15 after the online e-commerce platform agreed to sell its department store chain Intime Retail Group for 7.4 billion yuan, or about $1 billion, to Youngor Fashion.

Among the most actively traded companies, Zhongsheng Group declined 3.2% to HK $15.36, and WuXi Biologics declined 2.7% to HK $16.84. 

China Resources Beer Holdings dropped 1.9% to HK $25.70, and Budweiser Brewing Company fell 1% to HK $7.25.