SHANGHAI: Chinese stocks fell on Thursday, dragged by liquor companies, despite a private survey showing the country’s December services activity expanded at quickest pace in five months.
** China’s blue-chip CSI 300 Index dropped 1.4% by the lunch break, while the Shanghai Composite Index lost 0.9%.
** Hong Kong benchmark Hang Seng Index was down 0.5%.
** China’s services activity expanded at the fastest pace in five months thanks to a solid rise in new business, a private-sector survey showed on Thursday.
** However, this encouraging data alone is unlikely to significantly lift market sentiment given the broad macro weakness in the property sector and consumer prices, UBS analysts said in a note.
** Liquor stocks fell 2.3% and led declines, with Luzhou Laojiao and Kweichou Moutai down 3.2% and 1.6%, respectively. China and HK stocks extend losses on slow recovery concerns
** Foreign capital recorded a net outflow of 6.5 billion yuan ($908.4 million) via the northbound trading link, on track to log the largest daily outflow in three weeks.
** Global long-only funds offloaded Chinese equities at the fastest pace of 2023 in December as they rushed to meet redemption requests and to diversify away from the world’s second-largest economy, according to Morgan Stanley analysts.
** Hong Kong-listed tech stocks did not follow the overnight rally in their US counterparts, falling 0.5%.
** Alibaba rose only 0.5%, compared to a 2.5% increase in its American depositary receipts traded in New York.
** Meanwhile, shares of Meituan and Tencent declined 1.8% and 0.2%,respectively.
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