SHANGHAI: Chinese shares fell on Thursday, as parts of Shanghai began imposing new COVID-19 restrictions, with growth stocks leading declines on profit booking.
The CSI300 index fell 0.6%, to 4,193.01 by the end of the morning session, while the Shanghai Composite Index lost 0.5% to 3,247.86.
The Hang Seng index dropped 0.2% to 21,961.60.
China shares, Hang Seng rise to two-month highs
The Hong Kong China Enterprises Index lost 0.4% to 7,649.50.
** Residents of Shanghai’s Minhang district were ordered to stay home for two days in a bid to control coronavirus transmission risks, with daily national COVID-19 cases also rising slightly in the week.
** “The uncertainty over COVID outbreaks means Chinese equities are still likely to be susceptible to start-stop cycles,” BNP Paribas analysts said in a note.
** China’s exports grew at a double-digit pace in May, shattering expectations, while imports expanded for the first time in three months as Shanghai and Beijing relaxed curbs.
** To revive confidence among multinational companies, Shanghai officials are holding multiple meetings with foreign firms and easing a key border requirement for overseas workers.
** Asian stocks fell as investors worried about the outlook for more rate rises ahead of a key meeting of the European Central Bank later in the day.
** Growth stocks that led a recent rebound dropped on profit-taking, with semiconductors tumbling nearly 3% and new energy down 1.4%.
** Real estate developers jumped 2.3% and banks rose 1.3%, while construction engineering companies edged up 1.1%.
** Tech giants listed in Hong Kong edged down 0.8%, after jumping 4.8% on Wednesday following a series of positive developments in the sector.
** “While the market is still concerned about the regulation of data, but based on recent good news, the clampdown over the past year seems to come to an end,” said Linus Yip, chief strategist at First Shanghai Securities.
Comments
Comments are closed.