Hong Kong stocks flat ahead of China party congress, Q3 GDP data

Investors in Hong Kong are closely watching the twice-a-decade party congress that starts on Wednesday, where Chinese President Xi Jinping is expected to further consolidate his power for his second five-year term.

By: Reuters | Shanghai | Published:October 17, 2017 2:20 pm
Hong Kong stocks, China's Community Party meeting, Chinese economic data, Xi Jinping, World markets, Asian markets, Indian Express A Chinese investor reads a newspaper as he monitors stock prices at a brokerage house in Beijing, Tuesday, Oct. 17, 2017. Asian stocks rose Tuesday after Wall Street’s major indexes hit new highs as China prepared to open a key political meeting. (AP Photo)

Hong Kong stocks were little changed in quiet trading on Tuesday, with the main index hovering around 10-year peak as investors await a congress of China’s Communist Party and third-quarter Chinese economic data this week. The Hang Seng index was unchanged at 28,697.49, while the China Enterprises Index lost 0.3 percent, to 11,568.31 points.

Asian equities were generally firm, drawing inspiration from another record high on Wall Street overnight.

Investors in Hong Kong are closely watching the twice-a-decade party congress that starts on Wednesday, where President Xi Jinping is expected to lay out new policy initiatives and further consolidate his power for his second five-year term. China party takes key decisions to elevate President Xi Jinping to Mao, Deng pedestal

Markets are also awaiting third-quarter gross domestic product (GDP) data on Thursday and will be watching for any signs of a long-expected slowdown after a strong first half.

Economists polled by Reuters expect economic growth dipped marginally to 6.8 percent in the third quarter from 6.9 percent in April-June as government crackdowns on debt risks and speculation in the housing market start to bite.

However, China’s 10-year treasury futures dropped to the lowest level in nearly five months on Tuesday, as some traders bet on a possible GDP upside surprise, after central bank governor Zhou Xiaochuan said the economy could grow 7 percent in the year’s second half, versus 6.9 percent in the first six months.

Sector performance was mixed in Hong Kong.

Energy shares rose on higher oil prices, but industrial stocks fell.

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