China stocks slip on disappointing trade data, HK shares too decline
Last updated on: 08 August,2023 02:11 pm
Tech giants listed in Hong Kong lost 2.6pc; Hang Seng sheds 1.8pc
SHANGHAI (Reuters) – China stocks edged down on Tuesday after the country's July exports and imports contracted more than expected. Hong Kong shares were also down, dragged by property stocks.
China's blue-chip CSI 300 Index and the Shanghai Composite Index closed down 0.3 per cent. Hong Kong benchmark Hang Seng was down 1.8pc.
China's exports fell 14.5pc year-on-year in July, while imports contracted 12.4pc, customs data showed on Tuesday in the worst showing for outbound shipments from the world's second-largest economy since February 2020.
Though the trade data fell short of market expectations, China stocks did not react much to the news.
UBS analysts said in their China second-half equity outlook that current onshore market sentiment is "overly pessimistic", though they are not expecting a sharp increase in capital inflows in the short term, but a rather gradual economic recovery aided by policies that will ultimately lead stocks higher.
Foreign capital outflow was seen via the northbound trading link, with a net sale of 6.8 billion yuan ($942.78 million) of Chinese stocks, the largest outflow in three weeks.
CSI 300 Healthcare Index rebounded slightly after losing roughly 7pc since the end of July, after China's new anti-corruption clampdown started.
Chinese pharma giant Hengrui also rebounded, rising 2.6pc after losing 20pc since July 31.
Mainland property developers traded in Hong Kong slumped 4.7pc, with Country Garden slumping 14.4pc after the company was reported missing bond payments.
Tech giants listed in Hong Kong lost 2.6pc.