The largest Chinese stock indices and shares of Chinese companies fell amid foreign economic uncertainty caused by the election of Donald Trump as president of the United States, Nikkei Asia reports.
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The Hang Seng Index (HSI) of the Hong Kong Stock Exchange fell by 2.11%, from 20,728 to 20,229 points, and then recovered its fall to 20,426 points (at 1:17 PM Moscow time). The Shanghai Composite Index (SSEC) opened on November 11 with a drop of 28% to 3,418 points. Subsequently, the SSEC rose to 3,470 points, 0.51% more than yesterday’s close.
The general stock index HK50 of the Hong Kong Stock Exchange showed a drop of 2.17% to 20,377 points. The drivers were the shares of large Chinese and Hong Kong companies: Tencent holding (-1.81% to 413.2 yuan per share), CCB Bank (-2.42% to 6.05 yuan), Meituan Marketplace (- 3.23% to 185.6 yuan), the developer Longfor Group (-5.7%, to 12.9 dollars), the holding Alibaba Group (-3%, to 91.2 dollars), as well as the companies of Ping An Insurance (-3.41%, up to 48.2 yuan) and China Life (-4.02%, up to 16.7 yuan).
In addition to Trump’s election, the market reacted to the announcement by the Standing Committee of the National People’s Congress (NPC) of a domestic aid package totaling 10 trillion yuan ($1.4 trillion). Most of the money ($838 billion) will go to provincial governments to refinance debts over three years, with the remaining funds going to reduce municipal debt burdens.
The market is concerned that the aid package is too small and only aims to reduce debt obligations, which is not enough to revive China’s economy, said Ting Liu, chief economist at Nomura.
“This is not exactly the growth stimulus that many expected. Although the amount of support is impressive, the package is not intended so much to accelerate economic growth but to plug holes in the struggling local government system,” said Stephen Innes, analyst at SPI Asset Management, on the market reaction in an interview with AP.
After the election of US President Trump, who promised to impose tariffs on imported Chinese goods of up to 60%, some US companies began reducing production in China, redistributing production to other Asian countries, including Vietnam and Cambodia.
Author:
Mikhail Zelenin
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
