China’s tech shares buoyed the stock market on Tuesday, ahead of anticipated reform announcements from the ‘Third Plenum’ meeting, despite weak economic data impacting investor sentiment. In a mixed trading session, the Shanghai Composite index rose slightly by 0.08% to 2,976.30, while the blue-chip CSI 300 index gained 0.63%, and the CSI info tech index surged 3.2%, leading onshore gains. However, Hong Kong shares faced a downturn, with the Hang Seng index dropping 1.51%.
China’s economic growth in the second quarter fell short of expectations amid a prolonged property slump and job market uncertainties, fueling speculation that Beijing may implement further stimulus measures. The Third Plenum is expected to steer advanced manufacturing, tax system revisions, debt risk management, property crisis solutions, and private sector revitalization, with details pending release on Thursday.
Other sectoral movements included gains in consumer staples, real estate, and healthcare stocks, ranging between 0.06% and 1.25%, while the financial sector sub-index dipped 0.44%. The Shenzhen index climbed 0.49%, and the ChiNext Composite index saw a 1.394% increase. Conversely, the Hang Seng China Enterprises index significantly dropped by 1.51%, with notable declines in energy, IT, financial, and property sectors. Regional markets also displayed mixed results, with MSCI’s Asia ex-Japan stock index weakening by 0.36%, whereas Japan’s Nikkei index edged up 0.2%. The yuan was slightly weaker at 7.266 per U.S. dollar.
(With inputs from agencies.)