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Hong Kong Market falls as China lowers growth target

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Capital Market
Last Updated : Mar 05 2019 | 10:31 AM IST
Headline indices of the Hong Kong share market were down on Tuesday, 05 March 2019, as market sentiment was dampened by falls on Wall Street following weak US construction data. Investor sentiment was also dampened by news that China lowered its economic growth target for 2019 to a range of 6-6.5% from the 2018 target of around 6.5% and unveiled huge tax cuts. At midday break, the Hang Seng Index fell 8.82 points or 0.03% to 28,950.77. The Hang Seng China Enterprises Index fell 7.23 points or 0.06% to 11,568.30.

Premier Li Keqiang admitted that China faced severe challenges caused by the growing pains of economic transformation, when delivering the government work report to the annual legislative session Tuesday. Premier Li Keqiang on Tuesday said the Chinese economy is likely to grow between 6% and 6.5% in 2019, lower than last year's 6.5%. The government also aims to increase its defence spending by 7.5% to CNY1.190 trillion for this year, compared with a planned 8.1% rise in 2018. Delivering the annual government work report at the opening session of China's Parliament, the National People's Congress (NPC), Li said the government planned to create 11 million new jobs in 2019, the same as last year's target. According to reports, last year, China created 13.61 million new jobs. The government also aims to cap the urban jobless rate at 5.5% in 2019, unchanged from last year. In 2018, China's urban jobless rate stood at 4.9%. Referring to the slowing economy and the ongoing trade war with the US, Li said: A full analysis of developments in and outside China shows that in pursuing development this year, we will face a graver and more complicated environment as well as risks and challenges, foreseeable and otherwise, that are greater in number and size. In the context of the trade war, Li said China will continue to promote China-US trade negotiations.

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First Published: Mar 05 2019 | 10:10 AM IST

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