In a mixed day for Asian markets, stocks in Shanghai and Hong Kong slipped as Chinese traders remained unimpressed with Beijing’s latest plan to boost the country’s troubled property sector. Despite efforts by China’s housing minister to outline new measures, the world’s second-largest economy continues to struggle with the aftermath of strict Covid controls and a debt crisis in the property sector.
Last month’s initial pledges sparked hope for a recovery, but recent news conferences have caused volatility in trading floors. Analysts remain skeptical of the effectiveness of the latest measures, noting that the property mess cannot be easily patched up.
While Hong Kong and Shanghai dropped more than one per cent, other markets showed mixed performances. Moody’s Analytics suggested that China may be close to finding the bottom in housing prices, but concerns remain about the lack of funding for purchasing unsold inventory and the uncertain future of reconstruction projects.
Overall, Asian markets underperformed following a strong lead from New York, where small-cap stocks rose and positive earnings reports offset concerns about the tech sector’s outlook.