SHANGHAI: China’s blue-chip shares hit a nearly five-year low on Thursday, and Hong Kong stocks also fell as Moody’s cutting its credit outlook for both regions added to investor concerns about China’s weak recovery.

** The blue-chip CSI 300 Index lost 0.4% to touch its lowest level since February 2019, and the Shanghai Composite Index was down 0.3% by the midday recess.

** Hong Kong’s Hang Seng Index lost 1.5%, and the Hang Seng China Enterprises Index declined 1.7%.

** Asian shares slipped with Wall Street, while oil prices touching a five-month low promised to further reduce inflationary pressures and helped boost the global bond market.

China blue-chip stocks hit 5-year lows

** Moody’s put Hong Kong, Macau and swathes of China’s state-owned firms and banks on downgrade warnings on Wednesday, following an identical move the previous day on the mainland government’s ratings.

** Economic data hasn’t shown a strong recovery. China’s exports grew for the first time in six months in November, customs data showed on Thursday, while imports unexpectedly fell following the previous month’s increase.

** “China still needs to depend on domestic demand as the main driver for growth in 2024. The fiscal policy stance is the focus for the market,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “The Central Economic Working Conference next week may shed some light.”

** Foreign investors sold a net 4.6 billion yuan ($642.39 million) of Chinese shares via the Stock Connect so far on Thursday, following net buying in the previous session.

** In mainland markets, shares in semiconductors , tourism lost more than 1% each. In Hong Kong, tech giants dropped 1.8%.