Staff of Reuters 2 Minute Read* Banks and property firms lead gains* China’s second-quarter GDP growth falls short of expectations (Reuters) – SHANGHAI, July 15 – Hong Kong stocks finished the day higher on Thursday, with banks and property businesses leading the way, boosted by anticipation for further government policy support after the economy failed expectations in the second quarter. * * The Hang Seng index was up 208.81 points, or 0.75 percent, at 27,996.27 at the close of trading. The Hang Seng China Enterprises index increased by 1.08 percent to 10,174.27 points. * * The Hang Seng sub-index that tracks the property industry jumped 1.98 percent, while the finance sector gained 0.95 percent. * Postal Savings Bank of China Co Ltd increased by 5.71 percent, China Merchants Bank Co Ltd increased by 5.02 percent, and Country Garden Services Holdings Co Ltd up by 4.12%. ** China’s main Shanghai Composite index ended up 1.02 percent at 3,564.59, while the blue-chip CSI300 index ended up 1.35 percent. ** The IT sector jumped 0.6 percent, while the oil sector fell 0.1 percent. * * China’s economy developed at a slower pace than projected in the second quarter, owing to slower manufacturing activity, higher raw material costs, and additional COVID-19 outbreaks. “Our major concern is the uneven recovery we’ve seen so far,” said UOB economist Woei Chen Ho in Singapore. “For China, the recovery in domestic consumption is really essential.” ** After the People’s Bank of China reduced the amount of cash that banks must retain as reserves with effect from Thursday, investors are looking for the central bank to transition to a more lenient policy posture. * MSCI’s Asia ex-Japan stock index was up 0.78 percent in the region, while Japan’s Nikkei index was down 1.15 percent. * At 08:16 a.m., the yuan was trading at 6.4586 per US dollar, up 0.17 percent from the previous closing of 6.469. (Shanghai Newsroom contributed reporting; Rashmi Aich edited the piece.)/n
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