Stocks Slide in China Amid Falling Gold Prices and Trade Tensions
Mainland China and Hong Kong stocks decreased on Wednesday, driven by declining gold shares and ongoing Sino-U.S. trade tensions. Indices such as the Shanghai Composite and Hang Seng posted losses. Analysts expect limited monetary policy changes, focusing instead on fiscal policies to sustain economic growth.
Stocks in mainland China and Hong Kong experienced losses on Wednesday, largely prompted by a decrease in gold shares and persisting Sino-U.S. trade tensions, affecting investor confidence.
The Shanghai Composite index closed 0.07% lower at 3,913.76 points, while the CSI300 index fell by 0.33%. Gold stocks were hit hard, following a noticeable drop in global bullion prices, with the CSI non-ferrous metal industry sub-index down 1.34%. Western Region Gold saw a significant slump of 4.93%.
In Hong Kong, the Hang Seng Index decreased by 0.94%, ending at 25,781.77 points, while the tech index was down 1.41%. Analysts from Citi and Standard Chartered anticipate limited changes in China's monetary policy this year, with potential rate cuts in doubt. Focus may shift towards implementing fiscal strategies to drive growth.
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