China stocks close down as recovery, global rate concerns weigh
Asian stocks snapped a three-day winning streak on Tuesday, as the bond market's rally paused and investors reined in enthusiasm about a possible peak in global interest rates
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SHANGHAI: Chinese stocks closed down on Tuesday, as fresh trade data underscored an uneven economic recovery, and as global markets declined because investors reined in enthusiasm about a possible peak in global interest rates.
The blue-chip CSI 300 Index was down 0.4% and the Shanghai Composite Index was almost unchanged at market close. Hong Kong's Hang Seng Index dropped 1.7% and the Hang Seng China Enterprises Index lost 1.5%.
China's imports unexpectedly grew in October while exports contracted at a quicker-than-expected pace, in a mixed set of indicators that showed the recovery in the world's second-largest economy remains uneven.
Asian stocks snapped a three-day winning streak on Tuesday, as the bond market's rally paused and investors reined in enthusiasm about a possible peak in global interest rates.
Foreign investors sold a net 4.6 billion yuan ($631.45 million) of Chinese shares via the Stock Connect, after three days of inflows. Zhiwei Zhang, chief economist at Pinpoint Asset Management, said export growth remained sluggish as the economic momentum in the U.S. and Europe slowed.
"China has to rely more on domestic demand to boost growth," Zhang added. People's Bank of China Deputy Governor Zhang Qingsong said he was not overly worried about his country's economy.
The IMF on Tuesday upgraded its 2023 gross domestic product growth forecast for China to 5.4% from 5%, citing a "strong" post-COVID-19 recovery. In onshore markets, shares in tourism and insurance lost 1% and 2%, respectively. Stocks in artificial intelligence gained 1.8%.
In Hong Kong, tech giants declined 1%, while mainland developers retreated 3.1% after rising 3.4% in the previous session. Property developer Vanke slipped following a surge in the previous session, after its largest shareholder said on Monday it has prepared more than 10 billion yuan worth of "market tools" for the developer.
While the move to support Vanke is positive for the property giant, analysts said other developers, especially private players, may not get the same treatment, and weakening sales could still trigger more defaults.