SHANGHAI – Hong Kong stocks ended broadly flat on Wednesday as a recent recovery spiraled out of control, with some investors worried that Beijing’s stimulus measures would not be enough to revive the coronavirus-ravaged economy.
** Both the Hang Seng Index and the Hang Seng China Enterprise Index were up 0.2%.
** Chinese Vice Premier Liu He calmed the nerves of the tech sector on Tuesday by saying the government supported industry development and public listings for tech companies.
** The Hang Seng Tech Index, which was up about 14% in the past week in anticipation of the meeting, fell 0.3% as some investors were disappointed at the lack of detailed support measures.
** Hong Kong-listed real estate stocks rose 0.8% on news that more Chinese banks have cut mortgage rates for first-time home buyers, but some warned the sector remains in trouble.
** “House prices fell in more cities in April. The industry is going through a crisis,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
** “Government policies have become more supportive, but not overwhelming so… It is not clear when the housing sector will recover.”
** In its mid-year outlook, Morgan Stanley said it expects China’s growth to fall below its 5.2% target by 2022, with the drag on the COVID zero strategy “only partially offsetting” by broad easing” as indicated in the Politburo meeting.
** Gains in energy and industrial stocks were offset by losses in IT stocks. (Reporting by the Shanghai Newsroom; editing by Aditya Soni)
This post Hong Kong stocks flat amid growth concerns in China
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