China stocks ended lower on Monday as investor concerns over coronavirus-driven global shutdowns overshadowed an unexpected rate cut by the country's central bank. At the close, the Shanghai Composite index was down 0.9% at 2,747.21.
The blue-chip CSI300 index was down 0.97%, with its financial sector sub-index lower by 0.69%, the consumer staples sector fell 0.3%, the real estate index was down 0.93% and the healthcare sub-index lost 1.07%. The current concern is if external demand deteriorates due to the pandemic, China will be inevitably impacted as it's a key part of global industry chains, Bohai Securities said in a report.
The upside room for the A-share market is relatively narrow, the brokerage added. A rising tide of national lockdowns threatened to overwhelm policymakers' frantic efforts to cushion the fallout from the virus outbreak.
The ruling Communist Party's Politburo said the government will step up policy measures and tighten enforcement in a bid to achieve full-year economic and social development targets.