Oct 28, 2024 at 5:18 am GMT
Updates to midday levels
SHANGHAI(Reuters) -Mainland China and Hong Kong stocks were narrowly mixed on Monday as investors grew cautious ahead of key events next week, including a legislative meeting in Beijing and the U.S. presidential election.
At the midday break, the Shanghai Composite index . SSEC was up 0.17% at 3,305.30 points, while the blue-chip CSI300 index .CSI300 was down 0.22%.
The financial sector sub-index .CSI300FS was 0.74% lower, the consumer staples sector .CSI000912 edged up 0.8%, the real estate index .CSI000952 gained 1.59% and the healthcare sub-index .CSI300HC rose 0.96%.
In Hong Kong, the Hang Seng China Enterprises Index . HSCE fell 0.18% to 7,372.13 points, while the Hang Seng Index .HSI was down 0.21% at 20,546.24 points.
Republican former President Donald Trump and Democratic Vice President Kamala Harris are polling neck-and-neck in crucial swing states ahead of the Nov. 5 election. Investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty.
"With U.S. elections on the horizon and global volatility already heightened, taking on additional exposure to volatile Chinese assets may seem less attractive for now," said Tommy Xie, head of Greater China research at OCBC Bank.
China's top legislative body will meet from Nov. 4-8, state news agency Xinhua said on Friday, with no mention on the agenda of highly anticipated measures on debt and fiscal stimulus.
Beijing is counting on massive financial stimulus announced in September to kickstart lending and investment, as a sharp property market downturn and frail consumer confidence weigh on investor sentiment.
The PBOC , which has steadily reduced interest rates and injected liquidity, is under pressure to do more to ensure the economy grows at the government's target of around 5% this year.
China stocks have gained for two weeks and the CSI 300 index is up 23% since Sept. 24, when Beijing kicked off its rate cuts and soon followed through with other stimulus proposals to bolster the property sector and consumer demand.
"Overall, the market has shifted from its initial excitement to a more cautious 'wait and see' stance, becoming increasingly data-dependent," said OCBC 's Xie.
Earlier in the day, China's central bank announced it had activated its open market outright reverse repo operations facility and would use it to trade with primary dealers in open market operations on a monthly basis.
"Outright reverse repos can improve mid- to long-term liquidity injection," said Ming Ming, chief economist at CITIC Securities.
"With the supply of mid- to long-term liquidity being more sufficient, it will help guide lowering the financing costs of the real economy."
 Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Nicholas Yong 

Sumber : Reuters