(Updates to market close)
SHANGHAI, Feb 14 (Reuters) - China and Hong Kong stocks
were subdued on Tuesday, as Sino-U.S. tensions curbed risk
appetite and investors looked for more evidence that the Chinese
economic recovery is gaining traction.
** China's blue-chip CSI300 Index was little
changed by the end of the day, and the Shanghai Composite Index rose 0.3%. Hong Kong's benchmark Hang Seng dropped 0.2%.
** Friction between China and the United States kept
investors cautious as Washington and Beijing traded accusations
about high-altitude balloons, souring market sentiment.
** Meanwhile, bets on China's recovery cooled as investors
awaited further evidence that the economy is back on its feet
after Beijing scrapped its strict zero-COVID policy in December.
** "The market is still battling between expectations of a
strong recovery, and the reality of mild growth," Capital
Securities wrote in a report.
** "The policy remains generally loose, but there have not
been stronger-than-expected measures announced or implemented."
** China Asset Management Co expects volatility in the short
term, saying the stock market rebound driven by recovery bets is
coming to an end.
** However, the mutual fund house remains sanguine over the
course of the year, recommending sectors including real estate,
chemicals, construction materials, computer and chip design.
** Most sectors traded sideways on Tuesday, with non-ferrous
metal rising 0.8%, while liquor slid
0.7%.
** Meanwhile, Bloomberg News reported that U.S. Secretary of
State Antony Blinken is considering a meeting with China's top
diplomat Wang Yi at the Munich Security Conference.
** Investors are also eyeing U.S. inflation data due later
in the day.
** Some Hong Kong-listed units of Chinese brokerages,
including Haitong International and GF Securities continue to decline, after reports China bans Hong
Kong securities firms from soliciting mainland Chinese clients.
** The Hang Seng Tech Index and healthcare stocks fell 1% and 1.5%, respectively.
(Reporting by Shanghai Newsroom; Editing by Uttaresh.V and
Jacqueline Wong)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.