Hong Kong, China shares sluggish, banks slip on possible bond default

miércoles 5 de marzo de 2014 01:00 GYT
 

* HSI +0.2 pct, H-shares -0.4 pct, CSI300 -0.2 pct

* China tech, Macau casinos outperform tepid market

* Coal stocks sink after Beijing declares 'war' on pollution

* Solar-industry firm says it can't make bond payments due Friday

By Clement Tan

HONG KONG, March 5 (Reuters) - Hong Kong and China shares were sluggish early on Wednesday, with the Chinese banking sector weaker on worry about a possible default by listed company and Beijing's plan to introduce deposit insurance.

Premier Li Keqiang also said at the start of the China's annual parliamentary session, that the country's 2014 growth target will be kept at 7.5 percent, inflation at 3.5 percent and broad M2 money supply growth at 13 percent.

But fixed asset investment (FAI) growth this year will be targetted at 17.5 percent, lower than 19.6 percent in 2013 and retail sales growth at 14.5 percent, compared to 11.3 percent growth in 2013.

Some analysts had expected the growth target to be only 7 percent. Hong Hao, chief equity strategist at Bank of Communication, said that given the slower growth in fixed asset investment, it's going to be more difficult to reach the 7.5 percent target.   Continuación...