SHANGHAI: China’s benchmark index saw its worst daily performance in four months on Friday, with securities firms leading the losses after the cabinet asked them to slash service fees, while investors shrugged off data showing economic resilience in August.
** The blue-chip CSI 300 Index tumbled 2.4% at close, dropping the most since May 6, while the Shanghai Composite Index ended 2.3% lower.
** The Hang Seng Index lost 0.9% and the Hang Seng China Enterprises Index dropped 1.4%.
** For the week, the CSI 300 Index tumbled 3.9%, the biggest weekly decline in two months, while the Hang Seng Index retreated 3.1%.
** Other Asian markets also sold off sharply on Friday, as investors braced for a hefty US rate hike next week amid growing concerns of a global recession following warnings from the World Bank and the International Monetary Fund.
New energy shares drag China stocks lower, Fed rate-decision jitters weigh
** Meanwhile, China’s yuan weakened past the psychologically important 7 per US dollar level for the first time in two years, pressured by a buoyant dollar.
** Faster-than-expected growth in factory output and retail sales in August shored up the recovery from the effects of COVID and heatwaves, but a deepening property slump weighed on the outlook.
** Shares in securities firms slumped 5.8%%, dragging the financials index 3.5% lower.
** China will encourage securities firms, fund houses, guarantee and other institutions to further lower their service fees, according to a notice published by China’s cabinet on Thursday.
** Online broker giant East Money Information Co plunged nearly 11%.
East Money told local media that the company was operating normally and they had not received any notice on the details of the policy.
** Real estate developers declined 3.7%, after local media reported China’s eastern Suzhou city dialled back some easing measures in the property market.
** “The dial-back of property easing measures in some cities dragged down shares in the sector, while weak economic fundamentals and geopolitical tensions kept investor sentiment weak,” said Daisy Li, fund manager at EFG Asset Management.
** Energy shares tumbled 4.3%, healthcare firms lost 3.2%, while consumer staples and new energy stocks closed down more than 1.5% each.
** “Investor sentiment is likely to stay range-bound at best, given the ongoing uncertainty with COVID and the housing market, and geopolitical tensions,” Morgan Stanley said in a note.
** Casino operators jumped 2.8%, as Macau’s government opened bids for licences to operate casinos in the world’s biggest gambling hub.
** Tech giants listed in Hong Kong plunged 2.7%.
Comments
Comments are closed.