SHANGHAI: China stocks fell on Wednesday, dragged by real estate shares, while Hong Kong shares rose, led by tech stocks.
Ratings agency Fitch revised its outlook on China to negative, citing increasing risks to the country's public finance outlook.
"So far the market reaction to the Fitch downgrade news seems to be quite muted, versus the Moody's downgrade back in last December. Nonetheless, it may still hurt near-term market sentiment on China while the confidence level is already low," Xiaojia Zhi, chief China economist at Credit Agricole CIB said.
Several property developers reported weakening sales in March, suggesting continued pressure for the sector and dragging real estate shares down.
Investors are awaiting a string of key economic data due this week and the next to gauge policy paths.
