Update | Shanghai and Hong Kong stocks retreat as investors await China GDP data
Chinese markets look toward release of country's GDP figure on Wednesday
Stock markets in Hong Kong and Shanghai retreated after rallying for three days as investors on both sides paused for breath ahead of the release of the country’s second-quarter gross domestic product data on Wednesday.
The Shanghai Composite Index dropped 1.16 per cent to 3,924.49 on Tuesday while the Hang Seng index edged down 0.44 per cent to 25,112.06.
Some HK$126 billion worth of shares changed hands in Hong Kong, compared with Monday’s HK$136.8 billion. Trading in China’s two stock markets increased to 1.32 trillion yuan (HK$1.67 trillion), up from Monday’s 1.17 trillion yuan.
Macau casino operators Sands China and Galaxy Entertainment led the gainers in Hong Kong, rising 4.85 and 3.81 per cent respectively to their highest levels in a month.
Extending the weakness in mainland financial companies, all major lenders and insurers finished in the red. Investors also took profit from Hong Kong Exchanges and Clearing, which dropped 2.5 per cent to HK$233.6, after UBS said the daily turnover is expected to slow to HK$100 billion, from HK$127 billion in the first half. The bank also lowered its target price on HKEx to HK$225 from HK$235.
The H-share index, which tracks Hong Kong-listed mainland companies, slid 1.4 per cent to close at 11,836, dragged down by Great Wall Motor and insurer PICC Casualty & Casualty, each of which fell 4 per cent.
Beijing will provide the latest data on economic growth for the three months to June on Wednesday, with economists expecting the headline second-quarter GDP figure to come in at 6.9 per cent, down from 7.3 per cent in the first quarter of this year, the slowest pace since the first quarter of 2009. China’s annual 2014 GDP growth stood at 7.4 per cent, the lowest rate in 24 years.
