China stocks experienced a decline on Wednesday following the release of the United States inflation report, which indicated a reduced likelihood of a Federal Reserve rate cut, prompting caution among investors.
In Hong Kong, stocks edged slightly lower, with the Hang Seng Tech Index showing a modest 0.4% gain. JD.com announced a share buyback program of up to $3 billion over the next three years, leading to a 0.3% increase in its stock price.
The Shanghai Composite Index dropped by 0.4% to 3,043.83, while the Shenzhen market also saw a 0.3% decrease.
The U.S. inflation report dampened investor sentiment, as consumer prices in February were slightly higher than expected, reducing the likelihood of interest rate cuts by the Federal Reserve at its upcoming meeting.
Chinese state-owned banks are reportedly considering raising up to 80 billion yuan ($11.2 billion) in syndicated loans to assist property developer China Vanke in meeting its repayment obligations. Vanke, the nation's second-largest developer by market value, is facing financial challenges similar to Evergrande and Country Garden, both of which have defaulted on their debts.
Moody's downgraded Vanke's credit rating to 'junk' status on Monday, leading to fluctuations in the company's stock price. Despite a surge following news of potential financial support, Vanke experienced a 3.7% pullback on Wednesday.
China's central bank continued its gold-buying activities, driving up gold prices amid global geopolitical tensions and safe-haven demand. Official data revealed a 16th consecutive monthly increase in China's gold reserves, reaching 72.58 million ounces by the end of February.
Gold prices retreated on Wednesday after hitting a record high earlier in the week, with investors turning to gold producers and jewelers. Chow Tai Fook Jewellery Group and Zijin Mining Group saw stock price increases following recent market trends.
Chinese smartphone maker Xiaomi announced plans to launch its first electric vehicle later this month, while Cathay Pacific Airways reported a significant 336% increase in operating profit for 2023, surpassing previous records.
In the bond market, China's Ministry of Finance issued the year's first batch of renminbi-denominated treasury bonds in Hong Kong, continuing a longstanding tradition of issuing Renminbi sovereign bonds in the region.
