HK stocks rebound, China flat as investors await signals from parliament meeting

Source: Market Screener

HONG KONG, March 6 (Reuters) - Hong Kong stocks rebounded on Wednesday from a decline in the previous session while China shares were largely flat on Wednesday, as investors await clues on policy support details from the National People's Congress (NPC) this week.

** Hong Kong's Hang Seng Index climbed 2.3%, and the Hang Seng China Enterprises Index jumped 2.8%.

** The blue-chip CSI 300 Index and the Shanghai Composite Index edged up 0.1% each.

** Investors remain cautious after Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5% on Tuesday in his maiden work report.

** Analysts, however, say the report lacks policy details to support the achievement of the challenging 5% GDP target.

** Top economic policymakers including the finance minister, central bank governor and new chairman of the securities regulator are set to meet reporters this afternoon.

** "We think risk sentiment may remain volatile in the coming days as investors process the fiscal pledges and wait for industry-specific policies," UBS Global Wealth Management's chief investment office said in a note.

** Morgan Stanley economists pointed out that the fiscal package, which set the fiscal deficit target at 3% of GDP, remains insufficient to boost the economy amid mounting pressure.

** "The economic rebalancing efforts remained relatively slow," they said, adding the budget report does not disclose detailed subsidy amounts for the consumer trade-in program.

** The Hang Seng Tech Index surged 3.8% after a 4% tumble in the previous session.

** Index heavyweights Alibaba and Tencent jumped 4% and 3%, respectively.

** In mainland A-shares, new energy-related stocks rose 2.4% to lead the gains.

(Reporting by Summer Zhen; Editing by Sonia Cheema)