HONG KONG — Chinese shares were mixed on Wednesday as the country scrambled to avoid a bankruptcy of major real estate developers.
Hong Kong shares rose 0.2% to 17,129.37, extending their gains for a fourth day in a row. The Hang Seng Tech Index rose 0.7%, while JD.com gained 0.6% after the company announced a share buyback of as much as $3 billion over the next three years.
The Shanghai Composite Index fell 0.5% to 3,040.04, and the smaller market in Shenzhen also lost 0.5%.
China’s local media reported on Tuesday that the country’s state-owned banks could raise up to 80 billion yuan ($11.2 billion) in syndicated loans to help property developer China Vanke meet looming repayment deadlines.
Vanke was the country’s second-largest developer by market value, following the path of Evergrande and Country Garden, both of which have already defaulted on their debts. In January, a Hong Kong court ordered Evergrande to be liquidated after a failed attempt to restructure $300 billion in debt owed to banks and bondholders.
Credit rating agency Moody downgraded Vanke’s credit rating to ‘junk’ status on Monday.
Vanke shares rose on news of the possible financial aid, while experiencing a 2.2% pullback on Wednesday. On Tuesday, Hong Kong-listed shares closed 10.3% higher, and Shenzhen-traded shares ended the day up 5.7%.
In metals trading, China’s central bank continued to demonstrate robust gold purchasing activity amid global geopolitical tensions and port demand, which further pushed gold prices higher. Official data shows that China’s gold reserves increased for the sixteenth consecutive month, with gold reserves reaching 72.58 million ounces at the end of February, representing a month-on-month increase of 390,000 ounces.
Gold retreated on Wednesday after hitting a new record high on Monday as investors flocked to buy shares of gold producers and jewelers, sending stock prices higher.
Chow Tai Fook Jewelery Group saw a 0.9% gain on Wednesday, following last week’s 4.6% gain that pushed its shares to record highs. Zijin Mining Group, China’s largest gold producer by market value, rose 0.4% in Shanghai and 0.6% in Hong Kong.
Elsewhere, Chinese smartphone maker Xiaomi rose 0.4% after announcing on Tuesday that it would deliver its first electric car on March 28.