China stock edge down as property, consumer data disappoints; HK higher

May 17, 202404:53 UTC

China stocks struggled for direction on Friday and inched lower by midday as a slew of domestic data showed that growth prospects for the world's second-largest economy remain challenging.

China's factory output topped forecasts in April, while retail sales unexpectedly slowed and new home prices fell at fastest pace in over 9 years, piling pressure on Beijing to do more to support growth.

Meanwhile, China's finance ministry auctioned 30-year bonds at a yield of 2.57% on Friday, as Beijing kicked off sales of 1-trillion-yuan long-term special bonds to help stimulate a flagging economy.

Shares of some Chinese property developers HHSMPI rose by midday ahead of a news briefing held by officials about policies to ensure completion of housing projects.

Hong Kong stocks extended gains, driven by a 7% surge in Alibaba Group BABA after U.S. regulatory filings show some global funds, including "Big Short" investor Michael Burry, accumulated the firm's stocks last quarter.

Hang Seng Tech Index HHSTECH was up 0.7%. ** At the midday break, the Shanghai Composite index 000001 was down 0.1% at 3,119.27 points.

** China's blue-chip CSI300 index 3399300 was down 0.2%, with its financial sector sub-index 3399914 higher by 0.06%, the consumer staples sector 0000912 up 0.07%, the real estate index 000952 down 1.01% and the healthcare sub-index 399913 down 0.85%.

** Chinese H-shares listed in Hong Kong HSCEI rose 0.34% to 6,894.43, while the Hang Seng Index HSI was up 0.29% at 19,433.14.

** The smaller Shenzhen index 399106 was down 0.1%, the start-up board ChiNext Composite index 3399006 was weaker by 0.19% and Shanghai's tech-focused STAR50 index (.STAR50) was up 0.12%.