China stocks track Wall Street fall to post biggest drop in two weeks

BEIJING: China shares ended lower on Thursday, after falling the most in more than two weeks, taking cues from an overnight slump on Wall Street on renewed concerns over a coronavirus-led slowdown in global economic recovery.

At the close, the Shanghai Composite index was down 1.72pc at 3,223.18, while the blue-chip CSI300 index was down 1.92pc, both posting their biggest one-day percentage drop since Sept 9.

The financial sector sub-index was lower by 1.35pc and the consumer staples sector shed 1.68pc.

The real estate index was down 1.86pc and the healthcare sub-index lost 1.63pc.

The smaller Shenzhen index ended down 2.32pc and the start-up board ChiNext Composite index was weaker by 2.462pc.

US Federal Reserve Vice Chair Richard Clarida said on Wednesday the US economy remains in a "deep hole" of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers "are not even going to begin thinking" about raising interest rates until inflation hits 2pc.

Consecutive drops and resurgence in coronavirus cases abroad is delaying recovery in the United States and leading to market slumps, said Zhang Yanbing, an analyst with Zheshang Securities.

"The downward trend in mainland A-shares will be limited as China is achieving a better recovery."

China's cabinet said it would allow more qualified foreign investors to make a strategic investment in Chinese listed companies, state television reported.

Shares of Brilliance China Automotive Holdings Ltd rose to their highest since Aug. 25 after Reuters reported that state-backed investors are considering taking BMW's Chinese partner private.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.04pc, while Japan's Nikkei index closed down 1.11pc.

At 07:05 GMT, the yuan was quoted at 6.8223 per US dollar, 0.2pc weaker than the previous close of 6.809.