SHANGHAI: Chinese blue-chips ended lower on Monday, dragged down by semiconductors and tourism stocks, after an official data showed new bank lending in Beijing rose less than expected last month, while Shanghai shares closed higher. The blue-chip CSI300 index was down 0.4% at 4,991.66, while the Shanghai Composite Index gained 0.3% to 3,715.37 points. Chinese banks extended 1.22 trillion yuan ($189.51 billion) in new yuan loans in August, up from July but falling short of analysts’ expectations.
Economic data in recent months have shown China’s robust post-COVID recovery is losing steam as growth returns to more normal levels and fresh virus outbreaks disrupt activity. But authorities are trying to maintain broader growth while reining in riskier areas such as the property sector.
“Next year is an important year for the government as the ruling party will hold its 20th National Congress,” Zhiwei Zhang, chief economist at Pinpoint Asset Management said in a note.
“The government seems not in a hurry to loosen policies for now. They may prefer to raise fiscal spending around the year-end to boost growth next year.”
A sub-index tracking tourism tumbled 4.3%, as China reported the most locally transmitted coronavirus cases in one month ahead of the Oct. 1 National Day holiday.
Chip makers dropped 4.2%, after China market regulator said last Friday it fined three auto chip sales companies for driving up prices.
The new energy vehicles sub-index slipped 0.8%, after China’s Industry and Information Technology Minister said the country has “too many” electric vehicle (EV) makers and the government will encourage consolidation.
Comments
Comments are closed for this article.