Chinese Stocks Cool Down As Investors Check Reality

10/3/2024 3:14:17 PM

(MENAFN- Asia Times) Hong Kong-listed Chinese Stocks corrected on Thursday following a week-long rally as economists failed to be convinced that the financial stimuli unveiled by the People's bank of China (PBoC) last week could end China's property crisis.

The Hang Seng Index, a benchmark of Hong Kong stocks, fell 1.5% to close at 22,113 on Thursday. The index had gained 4,196 points, or 23%, in the six trading days after the PBoC announced a series of monetary easing measures on September 24.

Chinese property stocks, which had gone down by 70-90% over the past few years, also went on a rollercoaster ride in the past week.

Longfor Group decreased 9.5% to HK$16.98 (US$2.19) on Thursday after surging by 114% in the previous six trading days. Country Garden declined 12.1% on Thursday after gaining 273% from September 23 to October 2.

Shares of Agile Group were down 15.9% to HK$1.64 on Thursday after a 353% surge. China Vanke softened 1.2% to HK$11.86 after a 163% increase.

The Shanghai Composite Index has risen 21% to close at 3,335 on Monday since September 23. The A-share markets closed for the rest of this week due to National Day holidays.

China's gross domestic product is now expected to grow by 4.5-5% for the whole year of 2024, down from 4.8-5.3% in the previous survey compiled in July, according to an average projection by 25 Chinese economists who were approached by Nikkei.

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