China, HK stocks pare losses amid consumption stimulus

Sunny Optical Technology Co

08/01/2025 09:40

(Updates closing price)
       HONG KONG, Jan 8(Reuters) - 
    Chinese and Hong Kong stocks pared losses on Wednesday after
the latest stimulus efforts, but sentiment remained subdued amid
geopolitical tensions and economic uncertainties.
    
 
 ** China's blue-chip CSI 300 index  .CSI300  lost as much as
1.7% during the session, but pared some of it to close 0.2%
lower at 3,789.22 points. The Shanghai Composite index  .SSEC 
also pared losses and closed flat at 3,230.17 points.
 
** In Hong Kong, the benchmark Hang Seng Index closed 0.9% lower
after dropping as much as 1.7% earlier in the session, extending
its decline to a third consecutive day and reaching its lowest
point since late September.
    
** The losses were narrowed in the afternoon trading session as
markets digested Beijing's latest measures to expand the scope
of consumer trade-ins.  
** Leading the decline onshore, shares of semiconductor firms
 .CSI931865  fell 0.7%, giving up some of the gains made on
Tuesday following the U.S. Defense Department expanding the list
of firms allegedly aiding Beijing's military. 
 
** Shares of chipmaker Semiconductor Manufacturing International
Corporation  688981.SS  closed down 2% after weakening to a
three-week low during the trading session. Peer Hua Hong
Semiconductor  688347.SS  lost 1.1%.
 
 ** More home appliances, such as microwave ovens and water
purifiers, have been added to the list of products eligible for
the consumer trade-in scheme. Subsidies for digital goods will
also be offered this year to help revive demand in the sluggish
household sector, authorities said on Wednesday. 
 
 ** Both funding and implementation matter for the effectiveness
of China's consumption stimulus and were in line with
expectations, but the 2025 fiscal budget to be released during
the March "Two Sessions" will be the key to gauging the funding
strength, analysts at Goldman Sachs said in a note on Wednesday.
 
 ** "Chinese equities will likely go through a volatile period
until policy delivery materializes," the bank said in a separate
note. 
 
 ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.55%, while Japan's Nikkei index
 .N225  closed down 0.26%. 
 

 (Reporting by Jiaxing Li; Editing by Sherry Jacob-Phillips and
Janane Venkatraman)
 ((jiaxing.li@thomsonreuters.com))