China, Hong Kong shares head for weekly drop on Fed rate concerns
- Hong Kong’s benchmark Hang Seng was down nearly 1%
SHANGHAI: China and Hong Kong stocks slipped on Friday and were on track to close the week lower, as thin trading volumes and growing expectations of further US interest rate hikes dampened risk sentiment.
China’s blue-chip CSI300 Index dropped 1.6% by the lunch break, while the Shanghai Composite Index lost 1.8% to below 3,900 points. Hong Kong’s benchmark Hang Seng was down nearly 1%.
For the week, the CSI300 Index has lost 1.6%, while the Hang Seng Index was down 3.5%.
Onshore sentiment has weakened over the past month, after investors took profits from a record-breaking AI-led rally earlier this year. Liquidity has also dried up.
This week, daily turnover of onshore shares has been hovering near the lowest level of the year.
The tech-focused STAR50 Index was down 3% to its lowest level since late April.
Non-ferrous metal shares slumped more than 6%, leading declines onshore, with Zijin Mining Group down 7.3%, as metal prices broadly fell.
Against broad declines, oil shares rose, with PetroChina up 1.2%. Sentiment was also dampened as expectations for a Fed rate hike rose after US producer prices rose in August on higher costs for goods, airline fares and hospital services.
Tech majors listed in Hong Kong fell 0.8%.
Chinese artificial intelligence chipmaker Shanghai Enflame Technology surged about 200% in its Shanghai debut on Friday, after the Tencent-backed company raised 6.12 billion yuan ($912 million) in its initial public offering. ‑Reuters
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