SHANGHAI: Chinese stocks closed lower on Friday and the yuan fell to four-month lows, dragging down markets in Asia and rupturing the equity market rally after a surprise rate cut from the Swiss National Bank had investors wagering on who will ease policy next.
The Chinese yuan fell to the weaker side of the psychologically important 7.2 per dollar level, to hit a low of 7.24, its lowest since Nov. 17, 2023.
Foreign investors sold 3.1 billion yuan ($428.9 million) of Chinese shares on a net basis via the Stock Connect during the day, a second straight session of outflows.
At the close, the Shanghai Composite index was down 0.95% at 3,048.03.
Hong Kong’s Hang Seng index was down 363.63 points or 2.16% at 16,499.47. The Hang Seng China Enterprises index fell 2.5% to 5,757.67.
The blue-chip CSI300 index eased 1.01%, with its financial sector sub-index lower by 1.11%, the consumer staples sector down 1.29%, the real estate index down 1.68% and the healthcare sub-index down 1.35%.
The smaller Shenzhen index ended 1.22% lower and the start-up board ChiNext Composite index was weaker by 1.472%.
Around the region, MSCI’s Asia ex-Japan stock index was 1.08% lower, while Japan’s Nikkei index closed up 0.18%.
The largest percentage gainers in the main Shanghai Composite index were Dongguan Dingtong Precision Metal Co Ltd , up 20.01%, followed by Bonree Data Technology Co Ltd, gaining 13.9% and Shanghai V Test Semiconductor Tech Co Ltd, up by 10.15%.
The largest percentage losses in the Shanghai index were Xianheng International Science & Technology Co Ltd down 10.02%, followed by Dali Pharmaceutical Co Ltd losing 10.02% and Yongyue Science & Technology Co Ltd down by 10.02%.
In Hong Kong, the sub-index of the Hang Seng tracking energy shares dipped 2.4%, while the IT sector dipped 2.01%, the financial sector ended 1.34% lower and the property sector dipped 4.06%.
The top gainer on the Hang Seng was Henderson Land Development Co Ltd, rising 2.39%, while the biggest loser was Orient Overseas (International) Ltd, which fell 16.71%.
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