H-shares Index that tracks mainland Chinese companies listed in Hong Kong was also down 0.7 per cent to 9,979.60.
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Among the actives, CKH Holdings jumped 1.57 percent, while HSBC climbed 1.38 percent, Hang Seng Bank collected 1.21 percent, Sun Hung Kai Properties perked 2.36 percent, Henderson Land advanced 1.78 percent, Galaxy Entertainment surged 4.39 percent, Kunlun Energy gained 2.21 percent, China Petroleum and Chemical (Sinopec) climbed 2.74 percent, PetroChina advanced 2.54 percent, China Mobile spiked 2.61 percent, Bank of China collected 1.74 percent and Ping An Insurance gathered 2.00 percent.
While authorities haven’t signaled any new measures, “more policy loosening is likely imminent”, said David Millhouse, head of China research at Forsyth Barr Asia.
Building expectations for stimulus come amid another batch of economic data signaling a still-murky outlook for China. The RMB accounts for 7% of payments, by value, compared to 3% two years ago.
The official purchasing managers’ index slipped to 49.6 in November, marking its lowest level since August 2012 and falling short of expectations for a reading of 49.8.
The GDP data and the fact that the Reserve Bank of Australia seems far from cutting interest rates have buoyed the Aussie dollar, he explained. Offshore yuan was trading at 6.4483, slightly weaker by 0.04 per cent. Copper prices rose to a one-week high Tuesday after Chinese copper producers announced supply cuts for 2016, although they remain down 27% this year. The IMF’s move, which marks a milestone in China’s rise as a global economic power, could help accelerate a mild pickup in worldwide demand for the currency when it becomes effective in October next year.
Meanwhile, the Reserve Bank of Australia kept rates on hold at a record low of 2%, a decision which was largely expected by economists and which sent the Australian dollar surging against its American counterpart.
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The Australian dollar was last up 0.6% at $0.7271. Taiwan’s rose to 49.5 in November from 47.8 in October.
