China stocks wobble, HK down as investors focus on US election counting

Reuters

China stocks wobble, HK down as investors focus on US election counting

Nov 6, 2024 at 5:20 am GMT

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By Summer Zhen

HONG KONG, Nov 6 (Reuters) -China stocks turned flat on Wednesday after opening marginally higher, while Hong Kong stocks dropped, as investors watched the progress of the U.S. election for clues on the outcome and any potential implication for the Chinese economy.

** Markets were leaning towards the return of Donald Trump as president, who has promised voters he will impose tariffs of 60% or more on Chinese imports.

** By the midday break, the Shanghai Composite index .SSEC was up 0.16% at 3,392.36 points, while the blue-chip CSI 300 index .CSI300 was down 0.02%.

** The financial sector .CSI300FS slipped 0.15%, consumer staples .CSI000912 and real estate .CSI000952 lost 0.77% each, while the healthcare sub-index .CSI300HC rose 0.35%.

** The Hang Seng China Enterprises Index .HSCE fell 2.84% to 7,341.94, while the Hang Seng Index .HSI was down 2.61% at 20,459.26.

** Hong Kong-listed China tech stocks .HSTECH declined broadly, dragging down the Hang Seng.

** E-commerce giant JD.com 9618.HK slumped 5.2%, while Alibaba 9988.HK and Meituan 3690.HK were down 4% and 3.7%, respectively.

** "Chance of a Trump win is getting bigger, investors are now worried about more tensions over exports and tech competition, so China markets turned lower," said Steven Leung, executive director of institutional sales at UOB Kay Hian.

** China's equity market is in the midst of recovering from a years-long slump as authorities promise to address weak consumption and a downturn in the real estate sector. The CSI 300 index is up more than 20% since Sept. 23, when Beijing started rolling out rate cuts and stimulus.

** But a Trump win could stymie that rally, with technology, defence and export sectors in the crosshairs of his policies.

** However, Leung said he believes many election risks have already been priced in, and near-term China markets performance will likely depend more on the stimulus details from the National People's Congress meeting, which concludes on Friday.

** The smaller Shenzhen index .SZSC was up 0.57%, the start-up board ChiNext Composite index .CNT was higher by 0.83% and Shanghai's tech-focused STAR50 index .STAR50 was up 0.7%.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.97% while Japan's Nikkei index .N225 was up 2.37%.

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Reporting by Summer Zhen; Editing by Varun H K

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