China stocks closed lower on Thursday, as bleak industrial profit figure and widening COVID-19 outbreaks weighed on sentiment, while Hong Kong shares followed Asian markets higher amid hopes global central banks will slow monetary tightening.
** China’s blue-chip CSI300 index fell 0.7%, to 3,631.14 points, while the Shanghai Composite Index lost 0.6% to 2,982.90 points.
** The Hang Seng index added 0.7%, to 15,584.56 points, extending a rebound following Monday’s tumble.
** Profits at China’s industrial firms fell at a faster clip in the January-September period as COVID-19 curbs and a property crisis continued to weigh heavily on factory activity.
** Further damping risk appetite, Chinese cities from Wuhan in central China to Xining in the northwest are doubling down on COVID-19 curbs in a scramble to halt widening outbreaks.
** “Elevated operating cost and rising geopolitical risks continued to weigh on the industrial sector,” Goldman Sachs said in a note to clients, adding profit divergence across sector remained significant.
China stocks see-saw after brutal sell-off
** China’s consumer, industrial stocks fell on gloomy growth outlooks, while defence-related shares corrected after surges recently triggered by expectations of rising geo-political tensions.
** An index tracking Chinese traditional medicine stocks hit a three-month high.
** In Hong Kong, most sectors rose, though listed Chinese developers fell 3% to a fresh low amid prolong property market woes.
** The Hang Seng Tech Index rebounded for a third straight day, almost recovering Monday’s 10% loss.
** Alibaba jumped 4.1%, while JD.com surged 5.9%.
** Monday’s panic selling in Hong Kong was triggered by the perception that Chinese President Xi Jinping will sacrifice growth for ideology, and stick to zero-COVID, after consolidating power at the Communist Party Congress that closed over the weekend.
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