China stocks drop to 1-1/2-week low as investors eye more stimulus details
SINGAPORE, Dec 17 (Reuters) -China and Hong Kong stocks hit their lowest levels in more than a week on Tuesday, as investors were disappointed by the lack of detail in authorities' stimulus plans, although automakers and battery shares helped support the mainland blue-chip index.
** At the midday break, the Shanghai Composite index .SSEC was down 0.57% at 3,366.89 points and Hong Kong's Hang Seng Index .HSI slipped 0.39% to 19,718.56, with each touching their lowest levels since Dec. 6.
** China's blue-chip CSI300 index .CSI300 was up 0.34%, with automakers .CSI931008 and communications .CSI000916 sub-indexes climbing more than 1% each.
** The mainland indexes notched weekly losses last week as a readout from the annual agenda-setting Central Economic Work Conference repeated pledges to support consumption and growth but had no new details to excite financial markets.
** The economy appears to be weakening, as data released on Monday revealed that China's consumption slowed more than anticipated in November. Retail sales increased by only 3% last month, significantly lower than October's 4.8% growth and the 4.6% forecast by economists.
** Investors tend to speculate heading in to official meetings and then unwind their positions, said Steven Leung, executive director at broker UOB Kay Hian in Hong Kong, who expects the Hang Seng to oscillate around 20,000 until the year-end.
** "After the recent selloff, the market should find some support at this level ... there's not enough momentum to lift the index too much for the rest of the year."
** Mainland stocks are heading for their best year since 2016 and the Hang Seng its largest calendar-year gain since 2017, with a 16% rise for the year so far, though foreign investors have largely kept to the sidelines.
** Official data showed a record $45.7 billion outflow from China's capital markets last month, suggesting heavy foreign selling as the election of Donald Trump as U.S. President has investors bracing for tariffs and unpredictability.
** After the current session, Hong Kong markets have only five full trading days remaining this year, and investors are closely monitoring U.S. rates, as the U.S. Federal Reserve is expected to announce an interest rate cut on Wednesday.
Reporting by Tom Westbrook; Editing by Sherry Jacob-Phillips
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