BEIJING – Stock indices in China and Hong Kong closed lower on Monday following the ruling Communist Party of China’sin the Politburo Standing Committee led by President Xi Jinping did not include individuals perceived as a market reformist or more liberal on the Covid-19 stance.
Independent analyst Kelvin Wong in Singapore said: “The key leadership of China’s Politburo Standing Committee now consists of President Xi’s allies and is totally void of reformist personnel, which implies that policymaking will be centred around... common prosperity and security.” Mr Xi, who secured on Sunday a rare third term of rule over the country, has publicly praised China’sreplete with flash lockdowns, mass testing and tight border controls.
Still, good growth in manufacturing and infrastructure investment propped up China’s economy, which grew 3.9 per cent in the three months to September from a year ago. The latest figures surpassed expectations of economists, who in a Bloomberg poll forecast third-quarter growth at 3.3 per cent, while a Reuters poll put it at 3.4 per cent.
Dr Larry Hu, chief China economist at financial services firm Macquarie Group in Hong Kong, said: “Consumption and property continue as the major headwinds, while the government-led infrastructure spending is the main driver.”