China and Hong Kong shares weaken as stable growth eases stimulus bets

Business Recorder reported that Chinese and Hong Kong shares slipped on Tuesday as part of a wider regional retreat. The decline followed Beijing's decision to keep key lending rates steady and firmer GDP data that reduced hopes of further stimulus. The CSI300 fell 0.5% by the lunch break, the Shanghai Composite eased 0.1%, and the Hang Seng lost 1%. Financial shares were among the heaviest drags, with the CSI Banks Index and the broader financial sector each down 1.4%.

Beijing's lending rates stayed flat for a 17th consecutive month in October, a result markets had anticipated. The move came after the economy recovered from a three-year low in the previous quarter, with growth of 4.5% exceeding forecasts as strong exports made up for muted internal demand. Maybank analysts said the steady headline growth reduces the urgency for a fresh wave of fiscal and monetary support, though subdued investment and consumption would still keep growth slightly slower.

Elsewhere, the smaller Beijing Stock Exchange 50 Index climbed more than 4% after the CSRC said it would introduce an ETF following the index. Asian equities broadly retreated while oil prices climbed on geopolitical concerns ahead of closely watched earnings from prominent AI firms.