SHANGHAI: China stocks extended their drop on Monday, following five weekly losses, as risk sentiment remained weak after recent data showed sluggish economic recovery and policy signals from a top meeting failed to excite investors.
** The blue-chip CSI 300 Index lost 0.2%, and the Shanghai Composite Index slipped 0.1% by the midday recess.
** Hong Kong’s Hang Seng Index declined nearly 1%, and the Hang Seng China Enterprises Index fell 1.1%.
** The broad Asian stocks also slipped in a subdued start to a week where Japan’s central bank might edge further away from its uber-easy policies, while a key reading on US inflation is expected to underpin market pricing of interest rate cuts there.
** The tone of the highly anticipated annual Central Economic Work Conference last week remained pro-growth, but “there was not much detail on specific easing measures, especially in the property market,” Goldman Sachs said in a note.
** Recent economic data are mixed, but the macro picture of a weak property market and reluctant policy easing remains unchanged, Goldman Sachs said.
China stocks rebound on support measures, industrial growth
** Most sectors fell in mainland markets, with shares in semiconductors, new energy, media and tourism down between 1.4% and 1.9% to lead the decline.
** Shares of Shanghai Guijiu Co, a spirit maker that is connected to struggling wealth manager Hywin, dropped 10% by the daily lower limit to touch the lowest level since April 2021.
** In Hong Kong, stocks in tech giants retreated 1.2%, and mainland developers declined 1.9%.
** Shares of artificial intelligence (AI) software developer SenseTime Group dropped 11.9% after the firm’s founder Tang Xiaoou died late on Friday.
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