China, Hong Kong stocks retreat as Beijing`s incremental support disappoints
Wednesday, August 02, 2023       13:36 WIB

Aug 2 (Reuters) - China and Hong Kong stocks pulled back on Wednesday after a recent rally that was spurred by stimulus hopes, as some investors booked profits in the absence of concrete and forceful measures by Beijing to shore up a flagging economy.
China's bluechip CSI300 Index fell 0.7% by the lunch break, while the Shanghai Composite Index lost 0.8%. Hong Kong's Hang Seng Index declined 2%.
China and Hong Kong stocks had rebounded sharply since the July 24 Politburo meeting, where top Chinese leaders pledged to step up policy support for the economy amid a tortuous post-COVID recovery.
But the rally appears to be losing some steam as measures announced so far to boost consumption, revive capital markets, and aid the struggling property sector are seen as being either vague or too mild.
"Recent economic data shows that the incremental easing approach had not been effective on sustaining GDP growth momentum," Chi Lo, Greater China economist at BNP Paribas Investment Partners, wrote in a note.
"China's growth and market outlook are indeed contingent upon Beijing acting quickly and decisively to shore up activities and confidence before the current pessimism becomes entrenched and hurt growth further."
He warned that if easing policies remains incremental, investors would be disappointed, and "the market could even go into another round of sell-off".
Indeed, investors appeared unenthused after Chinese ministries, regulators and the central bank on Tuesday pledged more financing support to small businesses and the private sector.
Chinese developers listed in Hong Kong jumped as much as 4.9% in early trade after the People's Bank of China vowed measures to guide mortgage rates and downpayment ratios lower, but the sector ended the morning session up just 0.7%.
The Hang Seng Tech Index, which had surged since the Politburo meeting, plunged 2.6%. (Reporting by Shanghai Newsroom; Editing by Savio D'Souza)

Sumber : Reuters