China, HK stocks down as annual financial forum offers few surprises
SHANGHAI: China stocks dipped slightly on Wednesday as speeches by top financial regulators at the opening of the annual Lujiazui Forum delivered few fresh policy signals. Hong Kong shares also fell.
China, HK stocks close up as investors digest mixed macro data
China's blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong's benchmark index Hang Seng was down 1.2%.
China will advance the development of science and technology bonds to support innovation, Wu Qing, chairman of China's Securities Regulatory Commission, told the Lujiazui Forum in Shanghai on Wednesday.
Meanwhile, the country's foreign exchange regulator vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks.
With few policy surprises from the forum, investors turned their focus to the upcoming July Politburo meeting for clearer signals on economic support.
One of the few bright spots onshore were liquor shares , which rebounded for the third straight session, after tumbling to their lowest level since September 2024 after some of China's civil servants were banned from dining out in groups of more than three.
Risk sentiment remained fragile on Wednesday as Iran and Israel launched fresh missile strikes at each other, extending their air war into a sixth day.
Hong Kong shares of Chinese electric vehicle (EV) maker Li Auto fell nearly 4% to their lowest since May 9.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
China, HK stocks down as annual financial forum offers few surprises
SHANGHAI: China stocks dipped slightly on Wednesday as speeches by top financial regulators at the opening of the annual Lujiazui Forum delivered few fresh policy signals. Hong Kong shares also fell. China, HK stocks close up as investors digest mixed macro data China's blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong's benchmark index Hang Seng was down 1.2%. China will advance the development of science and technology bonds to support innovation, Wu Qing, chairman of China's Securities Regulatory Commission, told the Lujiazui Forum in Shanghai on Wednesday. Meanwhile, the country's foreign exchange regulator vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks. With few policy surprises from the forum, investors turned their focus to the upcoming July Politburo meeting for clearer signals on economic support. One of the few bright spots onshore were liquor shares , which rebounded for the third straight session, after tumbling to their lowest level since September 2024 after some of China's civil servants were banned from dining out in groups of more than three. Risk sentiment remained fragile on Wednesday as Iran and Israel launched fresh missile strikes at each other, extending their air war into a sixth day. Hong Kong shares of Chinese electric vehicle (EV) maker Li Auto fell nearly 4% to their lowest since May 9.
Business Recorder
10 hours ago
- Business Recorder
China's forex regulator vows to fend off external shocks
SHANGHAI: China's foreign exchange regulator on Wednesday vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks. Speaking at the Lujiazui Forum in Shanghai, Zhu Hexin, head of the State Administration of Foreign Exchange, said China's ability to counter forex market volatility has improved. China's yuan slips as Middle East tensions rise China will set up a forex management policy evaluation mechanism, and improve the rules for qualified foreign investors, he said.
Business Recorder
11 hours ago
- Business Recorder
Geopolitics ignite oil prices once again
Crude oil prices remain volatile, navigating between tightening supply concerns and weakening demand signals. Brent crude has approached $65 per barrel, driven primarily by geopolitical risks rather than underlying supply-demand fundamentals. The Russia-Ukraine conflict has sharply escalated, heightening the risk premium attached to oil markets. Increasing drone strikes by Ukraine and Russian retaliatory actions have raised concerns over potential disruptions to energy infrastructure, particularly Russian oil exports. This direct threat to oil logistics significantly threatens global oil supplies. Further compounding supply-side concerns is Iran's anticipated rejection of the recent U.S. nuclear deal proposal. Diplomatic sources indicate Tehran's negative response to halting uranium enrichment, cementing its continued exclusion from international oil markets. With ongoing U.S. sanctions, Iran's crude exports remain limited to China. Additionally, the escalating conflict between Israel and Iran has added another layer of complexity. Recent Israeli airstrikes on Iranian oil infrastructure and Iran's missile responses have spiked oil prices, briefly pushing Brent crude to near $75 per barrel. This geopolitical risk factor has particularly highlighted vulnerabilities around the strategic Strait of Hormuz, through which approximately 18-20 million barrels per day transit. Iran has threatened closures, potentially pushing oil prices significantly higher if disruptions occur, with analysts suggesting spikes above $100 per barrel in the event of a major escalation. Simultaneously, wildfires in Alberta, Canada, have reduced oil sands production by approximately 350,000 barrels per day, equating to about 7 percent of the province's total output. While minor in global terms, these outages amplify market sensitivities amid other supply disruptions. Additionally, the recent OPEC+ meeting reinforced bullish sentiments by approving a modest production increase of only 411,000 barrels per day for July—far below expectations of a larger supply boost. This decision triggered investors to unwind bearish positions, contributing to the immediate rally. However, despite these supply-side factors, demand indicators present a starkly different narrative. China's oil consumption, a critical component of global demand, has shown notable weakness. Chinese crude imports reached a six-month low in April amid reduced industrial activity and refinery downtime. Coupled with ineffective economic stimulus impacts, this underscores persistent sluggishness in Chinese demand. Going forward, oil price trajectories appear increasingly contingent upon geopolitical developments rather than fundamentals. Continued volatility driven by Israel-Iran tensions could keep prices elevated in the $70-80 per barrel range, with severe escalations potentially driving prices significantly higher. Beneath these geopolitical headlines, global demand fragility, especially in major economies like China, poses a substantial downside risk. Without sustained economic recovery, long-term demand forecasts may require downward adjustments. In sum, the crude oil market remains delicately balanced, driven by geopolitical tensions temporarily overshadowing fundamental demand weaknesses. Market participants must closely monitor geopolitical developments, particularly involving Israel, Iran, Russia, and Ukraine, alongside macroeconomic indicators to gauge future price movements effectively. Copyright Business Recorder, 2025
