China, Hong Kong stocks slip on profit-taking after recent rally

China, Hong Kong stocks slip on profit-taking after recent rally

HONG KONG: China stocks slipped on Friday, tracking weakness in other Asian markets, with investors locking in gains after a recent rally driven by hopes of more economic stimulus from incoming US President Joe Biden to temper the impact from Covid-19 pandemic.

The CSI300 index slipped 0.5 per cent to 5,537.05 at the end of the morning session, while the Shanghai Composite Index slid 0.7 per cent to 3,595.00.

The tech-heavy start-up board ChiNext gained 0.7 per cent, while the STAR50 index eased 0.9 per cent.

Republicans in the US Congress have indicated they are willing to work with the new president on his administration’s top priority, a $1.9 trillion fiscal stimulus plan, but some are opposed to the plan’s price tag.

Leading gains, both CSI300 materials index climbed 0.9 per cent and the CSI300 transport index slid 0.1 per cent.

“Its a consolidation after recent rally and underlying tone for both Shanghai and Hong Kong markets remain firm, and investors are continuously having strong confidence in the markets with support from government’s policies,” said Linus Yip, chief strategist from First Shanghai Securities.

In Hong Kong, the Hang Seng index fell 1.5 per cent to 29,480.11, while The Hong Kong China Enterprises Index also declined 1.5 per cent to 11,707.24.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.72 per cent while Japan’s Nikkei index was down 0.4 per cent.

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