SHANGHAI: China stocks closed down for a fifth straight session to around a one-month low on Tuesday, after data highlighted an uneven economic recovery, while investors worried about lingering geopolitical risks.
China’s blue-chip CSI300 Index dropped 0.5% at close, while the Shanghai Composite Index lost 0.3%.
Meanwhile, Hong Kong’s benchmark Hang Seng Index was down 1.7%, while the China Enterprises Index slumped 2%.
Investor sentiment remained weak after data last Tuesday showed economic recovery after reopening from COVID restrictions was uneven despite a strong Q1 growth, sending mainland share benchmarks down for five consecutive sessions.
Foreign investors net sold nearly 5 billion yuan ($722.9 million) of Chinese shares via the Stock Connect for a third straight day on Tuesday.
The market was also concerned about US restrictions on technology investments, analysts said.
“The geopolitical overhang has weighed on offshore China, i.e. Hong Kong and US-listed China stocks as the last two days saw geopolitical concerns spilling over into onshore China,” wrote Brendan Ahern, chief investment officer at KraneShares in a note.
“The recent pullback in onshore China should get attention from policymakers,” he said.
That worry dragged Hong Kong-listed tech giants down 3.5%, with Meituan tumbling 4.4%.
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