China, HK stocks end the week lower as investors await fresh stimulus

Reuters
01-10
China, HK stocks end the week lower as investors await fresh stimulus

Updates to market close

SHANGHAI, Jan 10 (Reuters) - China and Hong Kong stocks ended the week lower as traders held off on increasing their market investments and awaited fresh stimulus measures from Beijing.

** China's blue-chip CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC both closed down around 1.3% on Friday. Hong Kong benchmark Hang Seng .HSI was down 0.9%.

** This week, the CSI300 Index has fallen by 1.1%, while the Hang Seng Index declined 3.5%.

** "The key question in 2025 is how much stimulus policymakers will provide. It will largely depend on the impact from tariffs, as policymakers will do just enough to achieve the GDP growth target," analysts, led by Larry Hu at Macquarie, said in a note.

** "Few investors feel it's a bull market, as corporate earnings remain soft amid weak domestic demand. The prevailing view is that liquidity will get looser in 2025 but nominal growth will stay sluggish."

** Real estate .CSI000952 and AI-related .CSI930713 shares led the decline in the onshore market, down 2.1% and 2.6%, respectively.

** Country Garden has proposed a deal to its offshore creditors that will cut its debt by $11.6 billion, paving the way for the property developer to seek more time from the high court in Hong Kong to implement a restructuring plan.

** Vanke's onshore shares fell 3.7% on Friday, and its bond prices have been dropping since December last year. The company said on Thursday that it is fully committed to addressing its public debt maturing this year.

** China's central bank said on Friday it has suspended treasury bond purchases, triggering a jump in yields and spurring speculation that the move was aimed at defending a falling currency.

(Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)

((li.gu@tr.com))

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