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ASIA STOCKS: China & HK Stocks Fall, Prop Slumps On Disappointing Policy Updates

ASIA STOCKS
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Chinese equities are under pressure today as investors reacted cautiously to the government's signal of increased public borrowing and a higher fiscal deficit target for 2025 to bolster consumption. While the Central Economic Work Conference highlighted support for consumption, markets remained wary due to a lack of concrete measures. The CSI 300’s performance remains crucial heading into the weekend, with any disappointment potentially setting a negative tone through year-end. 

  • Property Stocks have continued to sell-off through the mornings sessions after China's Central Economic Work Conference disappointed investors with a lack of concrete measures to address key economic challenges, including the property market slump. While the government emphasized fiscal spending to boost consumption and stabilize urban village renovation, no actionable strategies were outlined.
  • Hong Kong equities are lower across the board, with property indices the worst performing, Mainland Property Index is down 3.88%, the HS Property Index is 3% lower, while the wider HSI is down 1.65%.
  • Similar in China mainland equities with the BBG China Property Index falling 4.45%, while the CSI 300 is 1.80%, while similar across the wider Asian region today small-cap are outperforming large cap stocks with the CSI  2000 trading down just 0.75%.
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Chinese equities are under pressure today as investors reacted cautiously to the government's signal of increased public borrowing and a higher fiscal deficit target for 2025 to bolster consumption. While the Central Economic Work Conference highlighted support for consumption, markets remained wary due to a lack of concrete measures. The CSI 300’s performance remains crucial heading into the weekend, with any disappointment potentially setting a negative tone through year-end. 

  • Property Stocks have continued to sell-off through the mornings sessions after China's Central Economic Work Conference disappointed investors with a lack of concrete measures to address key economic challenges, including the property market slump. While the government emphasized fiscal spending to boost consumption and stabilize urban village renovation, no actionable strategies were outlined.
  • Hong Kong equities are lower across the board, with property indices the worst performing, Mainland Property Index is down 3.88%, the HS Property Index is 3% lower, while the wider HSI is down 1.65%.
  • Similar in China mainland equities with the BBG China Property Index falling 4.45%, while the CSI 300 is 1.80%, while similar across the wider Asian region today small-cap are outperforming large cap stocks with the CSI  2000 trading down just 0.75%.