China stocks experienced a modest rise on Wednesday, driven by robust import growth according to the country’s trade data, although gains were tempered by weaker-than-expected export figures. Hong Kong shares also saw an increase.
In July, China’s exports increased by 7.0% from the previous year, a slower rate than June and below the forecasted 9.7% rise. However, imports demonstrated a strong 7.2% growth, as per customs data released on Wednesday.
UBS analysts noted that the export growth benefited from a low base of comparison and more working days in the month compared to the previous year. They advised caution regarding the export outlook, which remains a crucial support for China’s struggling economy.
By midday, the Shanghai Composite Index had risen by 0.31% to 2,876.17 points, while the blue-chip CSI 300 Index saw a 0.18% increase. The CSI Energy Index rose by 1.8%, but Consumer Staples slipped by 0.16%, Real Estate fell by 1.55%, and Healthcare dropped by 0.44%.
Chinese H-shares listed in Hong Kong climbed by 1.34% to 5,931.17, and the Hang Seng Index increased by 1.31% to 16,864.92. Tech giants listed in Hong Kong were up by 1.2%.
The smaller Shenzhen Index remained unchanged, while the start-up board ChiNext Composite Index decreased by 0.16%, and Shanghai’s tech-focused STAR50 Index fell by 0.34%.
In the wider region, MSCI’s Asia ex-Japan Stock Index firmed by 1.81%, and Japan’s Nikkei Index rose by 2.79%. The yuan was quoted at 7.183 per US dollar, 0.39% weaker than the previous close of 7.155.
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