SHANGHAI: China shares fell on Thursday, dragged lower by semiconductor stocks, while Hong Kong stocks also dropped.
A slight moderation in China’s trade slump did not help lift sentiment as investors are still hoping for more stimulus.
China’s blue-chip CSI300 Index closed down 1.4%, while the Shanghai Composite Index lost 1.1%.
Hong Kong benchmark Hang Seng Index was also down 1.3%.
China’s exports fell 8.8% in August, while imports contracted 7.3%, increasing pressure on the country’s vast manufacturing sector as demand sags at home and abroad.
However, the declines for both imports and exports narrowed from July, a positive surprise for the market.
While the better-than-expected data came as a relief, more stimulus measures are needed to drive economic growth and lift market confidence, UBS analysts wrote in a note.
The US Commerce Department should end all technology exports to Huawei and SMIC, China’s top chipmaker, following the discovery of new chips in Huawei phones that may violate trade restrictions, the chair of the House of Representatives’ committee on China said on Wednesday.
Semiconductor Manuf acturing International Corp (SMIC) declined 7.6%, after rising about 25% since Aug. 21.
More broadly, semiconductor stocks dropped 3.8%, the largest daily slide in over two months, after a recent rally.
Comments
Comments are closed for this article.