China stocks range-bound as investors eye annual economic meeting, HK drops

HONG KONG: China traded in a narrow range on Wednesday as investors awaited a key economic policy meeting for clues on policy easing next year.

At the close, the Shanghai Composite index was up 0.29% at 3,432.49.

The blue-chip CSI300 index was down 0.17%.

Semiconductor stocks lost 1.6% to lead the decline, with financial sector sub-index lower by 1%, the consumer staples sector up 0.22%, the real estate index up 0.95% and the healthcare sub-index up 0.26%.

The decline of Hong Kong stocks expanded in the afternoon session and yuan fell after Reuters reported that China is considering allowing the yuan to weaken in 2025 as they brace for higher trade tariffs in a second Donald Trump presidency in the United States.

The Hang Seng index was down 156.23 points, or 0.77%, at 20,155.05. The Hang Seng China Enterprises index fell 0.78% to 7,249.38.

Investor focus has shifted to the annual Central Economic Work Conference, which is expected to be held this week, after Monday’s Politburo meeting vowed to switch to an “appropriately loose” monetary policy to spur economic growth. But detailed measures remain unclear.

China stocks give up some gains

“The market is anxiously waiting for details on what exactly the government will do. Hopefully the central economic working conference will shed more light, particularly on the fiscal policy front,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

Jefferies analysts expect detailed easing measures could fall short of investor expectations.

“Most mainland investors expect range-bound market in 2025,” they said.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.52%, while Japan’s Nikkei index closed up 0.01%.

The yuan was quoted at 7.2595 per U.S. dollar at 0834 GMT, 0.14% weaker than the previous close of 7.2491.