Chinese stocks reversed during the trading session and closed in negative territory this Friday after sources told Reuters that China’s budget deficit in 2024 will be below expectations.
At the same time, shares in Hong Kong rose on December 15 due to the authorities’ decision to support the real estate market.
The Shanghai Composite index fell 0.56% to 2,942.56 points, the blue-chip CSI300 index fell 0.31% to 3,341.55 points.
Hong Kong’s Hang Seng index rose 2.38% to 16,792.19 points, recording its biggest session jump in a month, while the China Enterprises index rose 2.28% to 5,700.39 points.
Authorities in the world’s second-largest economy decided at an annual economic conference earlier this week to target a government deficit of 3% of gross domestic product for 2024, three sources familiar with the matter said.
China’s industrial output rose 6.6% year on year in November, accelerating from October’s 4.6%. Retail sales also increased, but fell short of forecasts.
Regional authorities in Beijing and Shanghai on Thursday eased restrictions on property purchases, including lowering minimum deposits for first and second homes, in a sign of renewed efforts by Chinese authorities to revive a sluggish property market.
“We continue to expect additional housing policy easing measures in the coming months, including greater easing of home purchase restrictions in major cities,” US bank Goldman Sachs said in an assessment.
China’s real estate sector jumped 1.5%, while most other sectors fell.
China’s central bank increased liquidity supply, injecting a net 800 billion yuan into the banking system as it extended the maturities of medium-term loans, the biggest monthly increase on record. The interest rate, as expected, remained unchanged.
The Hong Kong-traded index of tech giants rose 2.2%, while the mainland property developers sector soared 3.8%.
2023-12-15 12:18:00
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