China stocks fell on Wednesday, dragged by property developers as Country Garden missed a coupon payment amid some profit-taking after no policy surprise from the annual parliament meeting, while Hong Kong shares tracked global peers higher.

 

** China's Shanghai Composite Index lost 0.6%, while the blue-chip CSI300 Index slipped 0.3% by the midday break.

** Hong Kong's benchmark Hang Seng added 0.3%, and the Hang Seng China Enterprises Index was flat.

** The broader Asian shares market notched seven-month highs, tracking record peaks on Wall Street overnight, as investors mostly shrugged off slightly hotter-than-expected U.S. inflation, betting that it would not derail interest rate cuts expected by the middle of the year.

** Country Garden Holdings fell 3.3%, as the Chinese property developer said funds for a 96 million yuan ($13 million) coupon payment due Tuesday were not fully in place and it planned to raise funds for the missed onshore coupon payment within 30-day grace period.

** The CSI 300 Real Estate Index declined 2.3%, insurance slumped 3%, and infrastructure lost 2.6%.

** In Hong Kong, mainland developers listed in the city slipped 0.7%, but tech giants gained 0.8%.

** Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5%, while analysts say much more stimulus may be needed to hit this year's target.

** "There were no upside surprises from the long-awaited National People's Congress, with headline economic and fiscal targets in line with market expectations, while policy details were lacking," said UBS in a note.

** "While policy remains supportive, most of the good news seems priced in with the recent rally," the bank said, adding it cuts Chinese equities from most preferred to neutral.

 

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)