SHANGHAI, July 7 (Reuters) - Mainland China and Hong Kong
stocks slipped on Tuesday, led by property companies, as
investors awaited guidance from minutes of the U.S. Federal
Reserve's latest meeting and fresh domestic economic data.
** By the midday break, the benchmark Shanghai Composite
index fell 1%, while the blue-chip CSI300 index
eased 0.8%.
** In Hong Kong, the benchmark Hang Seng Index lost
0.4% and the city's tech shares edged down 0.3%.
** Property shares were the main drag in morning trading,
with a sub-index tracking the sector declining
3.1%.
** The World Bank projected China's economic growth would
ease to 4.4% in 2026 and to 4.3% in 2027 as the property sector
continues to adjust to lower housing demand and consumers remain
cautious.
** Investors are awaiting a string of domestic economic data
due for release in the coming week, hoping for a clearer picture
of the broader economy.
** China is due to report June inflation data on Thursday,
followed by second-quarter gross domestic product (GDP) figures
and other activity indicators next Wednesday.
** "While high-frequency activity indicators likely stayed
soft in June, we expect Q2 GDP growth to prove more resilient
than monthly data may suggest, supported by its supply-side
nature, as well as likely solid services consumption and tech
capex during the period," said Serena Zhou, senior China
strategist at Mizuho Securities.
** "We therefore expect Beijing's policy support to remain
measured and targeted, with the policy mix skewed toward fiscal
measures."
** In overseas markets, focus is on minutes of the Federal
Open Market Committee's (FOMC) June meeting on Wednesday for
clues about the U.S. rate outlook.
** Beijing and Hong Kong authorities announced a range of
measures to bolster currency, bond and gold trading in Hong
Kong, stepping up efforts to establish the city as a leading
offshore yuan centre amid heightened geopolitical tensions.
** Investor thinking on Chinese assets is changing, as
steady returns through the turbulence of the Iran war and AI
frenzy show how China has broken step with global markets,
carving out a niche as a sandbag against volatility.