SHANGHAI: Chinese shares fell on Monday as financials and infrastructure stocks retreated after China kept its benchmark lending rate unchanged, while technology names led the Hong Kong market lower on concerns of China's new regulatory rules.
The CSI300 index fell 0.6% to 4,621.83 at the end of the morning session, while the Shanghai Composite Index lost 0.4% to 3,478.17.
The Hang Seng index dropped 0.7% to 24,155.05 points. The Hong Kong China Enterprises Index lost 0.8% to 8,466.65.
** China kept its benchmark lending rates for corporate and household loans unchanged at its February fixing on Monday, in line with market expectations.
** The CSI Financials Index lost 0.8%, semiconductors declined 0.9%, while non-ferrous metal fell roughly 1%.
** New energy firms, machinery stocks and infrastructure shares dropped more than 1% each, according to data from China Securities Index.
** China Securities Index data also showed the coal sub-index rising 2.7%. Chinese coking coal futures also jumped, as supply remained relatively low and demand was expected to recover further.
** Tech giants listed in Hong Kong dropped 1.4%. Meituan edged down 1.1% following previous session's nearly 15% slump on China's new rules to promote a faster recovery from the pandemic in the services sector.
** "We caution against emotional take on a could-be innocuous directive that is supposed to help small businesses," said Hao Hong, Head of Research at BOCOM International in a note. "Regardless, in the near term, fear will trump reasons, causing much volatility for investors who are bottom fishing in the Chinese internet space."
** Alibaba Group and Tencent Holdings retreated 3.2% and 2.8% respectively.
** Mainland developers listed in Hong Kong lost 2.1%, with SUNAC down more than 10% on debt worries in the troubled sector.
** Zhenro Properties slumped 12.6% after the developer said its existing internal resources may be insufficient to repay its upcoming debt due in March.