Market analysis on behalf of Milad Azar Market Analyst at XTB MENA

Chinese stocks experienced a mixed Thursday, with Mainland stocks ending the day slightly negative. The CSI 300 Index closed at 3,592 points amid a lack of positive momentum. Conversely, Hong Kong equities outperformed their Mainland counterparts, with the Hang Seng Index gaining about a third of a percent to close at around 18,476 points. Markets are now focused on upcoming catalysts at the end of the week, including the release of Chinese trade data on Friday and the Shanghai forum on Saturday, where Wu Qing, the country’s top securities regulator, will disclose China’s market-related policy measures.

The anticipated unveiling of new capital market policies suggests a bullish sentiment for Chinese stocks. Investor interest in Wu’s strategies to support the nation’s stock market, coupled with previous market-boosting measures that have already yielded positive results, further fuels this sentiment. Furthermore, the focus on topics such as technology innovation and capital market development underscores China’s commitment to financial reforms, potentially attracting additional investment. Overall, these factors point toward a positive outlook for Chinese stocks in the medium term.