SHANGHAI: Chinese stocks fell on Thursday, with the blue-chip index hovering around a 4-1/2 year low amid weak sentiment, as investors remained cautious about China’s domestic recovery and overseas risks.
Hong Kong stocks also declined.
** The blue-chip CSI 300 Index dropped 0.5%, and the Shanghai Composite Index lost 0.3% by the midday recess.
** Hong Kong’s Hang Seng Index dropped 0.6% and the Hang Seng China Enterprises Index declined 0.5%.
** Broader Asian stocks slid to 11-month lows, US futures dropped and the dollar surged as Treasury yields rebounded toward peaks on fears that US interest rates will stay high.
** New energy shares slumped 2.4%, with photovoltaic companies down 3%. High interest rates are derailing automakers’ ambitions to accelerate the shift to electric vehicles, Reuters reported.
** In Hong Kong, tech giants slipped 0.3%, while mainland developers plunged 2.2%.
** “It takes time to test the bottom in the market,” said Huang Yan, fund manager of Shanghai QiuYang Capital.
** Investors shouldn’t be too optimistic as the economic situation still remained harsh, Huang added.
** Chinese stocks staged a moderate rebound in previous two sessions, after a slew of stimulus measures including state fund buying and a plan to issue 1 trillion yuan ($136.76 billion) of sovereign bonds.
China stocks end up on $137bn sovereign bond issue plan
** But on a weekly basis, the benchmark indexes, were both down more than 0.5% so far, underscoring fragile sentiment.
** Conflict in the Middle East also remained an overhang risk for investors, pushing up oil prices and denting appetite on global risk assets.
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