HONG KONG: China stocks traded in a tight range on Thursday while Hong Kong shares extended loss, as risk-off sentiment prevailed ahead of US inflation data and China’s 20th Communist Party congress.
** China’s blue-chip CSI 300 Index dipped 0.28%, while the Shanghai Composite Index edged up 0.16%.
** Hong Kong’s Hang Seng Index declined 1% and the Hang Seng China Enterprises Index slid 1.33%, both on a six-day losing streak.
** Asian stocks followed Wall Street lower and bond yields remained depressed as investors weighed the risks of global recession amid hawkish Federal Reserve rhetoric and uncertainty about the Bank of England’s commitment to stabilising markets.
** The White House rolled out a long-delayed national security strategy on Wednesday that seeks to contain China’s rise while reemphasising the importance of working with allies to tackle challenges confronting democratic nations.
** For three days in a row this week, People’s Daily, the official newspaper of the Communist Party, stressed China will continue with current tough COVID-19 policies.
** Hong Kong’s government is unlikely to further ease the border rules from current “0+3” arrangement any time soon, the South China Morning Post reported.
China stocks fall as COVID flare-ups, US crackdown weigh
** “Investors are losing hopes on any near-term COVID policy easing or meaningful stimulus on the economy. On the other hand, Asian countries continue to see capital outflows as US inflation pressure is still high,” said Steven Leung, executive director at UOB Kay Hian.
** Chinese healthcare stocks jumped 3.4% and computer-related names rose 3.1% to lead the gains.
** Energy stocks, property developers and banks were among the biggest losers.
** In Hong Kong, large tech companies dragged the market lower, with the Hang Seng Tech index down 1.7%.
** Meituan dropped 2.2%, while JD.com tumbled 3.2%.
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