China, Hong Kong shares drop on stimulus doubts
Wednesday, July 26, 2023       13:56 WIB

HONG KONG, July 26 (Reuters) - China and Hong Kong stocks retreated on Wednesday after the previous day's rally, as investors remained skeptical on the strength of stimulus despite Beijing's call for providing more support to the economy and boosting demand.
China's blue-chip CSI 300 Index dipped 0.34% and the Shanghai Composite Index declined 0.35%.
The Hang Seng Index dropped 0.79% and Hang Seng China Enterprises Index fell 1.19%.
Broader Asian markets were trading mostly weaker ahead of the U.S. Federal Reserve's expected interest rate hike to be delivered later in the day.
China's securities regulator on Tuesday vowed to deepen reforms in its capital markets and open them up further in the second half of this year, as part of moves to implement policy support pledged by top leaders of the country.
However, the market doubts if the Chinese government will roll out any big stimulative measures that can get investors excited.
Arthur Budaghyan, chief emerging markets/China strategist at BCA Research, said he expects authorities will provide targeted and piecemeal stimulus, thus the stimulus multiplier will be low and hardly drive the economy.
"Investors should use any rebound in onshore stock prices to downgrade A-shares from overweight to neutral within global and emerging market equity portfolios," he said in a note.
Hong Kong-listed China property stocks lost steam, dropping 1.6%, as worries mount over Country Garden's ability to repay huge debts.
Tech giants listed in Hong Kong lost 1.4%.
In mainland A-shares, media stocks fell 2.6% to lead the declines.
On the geopolitical front, U.S. Secretary of State Antony Blinken criticized China's 'problematic behaviour' during a visit to Tonga. (Reporting by Summer Zhen; Editing by Varun H K)

Sumber : Reuters.com