SHANGHAI: China’s blue-chip index closed nearly 3% lower to mark its worst day in nearly four months, as investors dumped shares across the board on growth concerns, a day after China’s Communist Party celebrated its centenary.
The CSI300 index fell 2.8% to 5,081.12, while the Shanghai Composite Index lost 2% to 3,518.76 points. Both the indices had their biggest one-day percentage drop since early March.
“The market is searching for clearer signs before turning more bullish, given macro growth hiccup and earnings recovery uncertainties ahead of upcoming results season,” Morgan Stanley said in a note.
State Street Global Markets said investor sentiment dropped sharply in Asia in June, citing “increased tightening fears out of China combined with greater uncertainly around the impact of the Delta variant.”
Consumer, healthcare and brokerage shares were among the biggest declines on Friday.
China’s property shares dropped amid signs of slowing sales growth and tighter credit conditions.
“Onshore and offshore capital markets will remain volatile amid tight credit conditions for developers and weak investor sentiment,” said Celine Yang, a Moody’s vice president and senior analyst.