Consumer, financials drag on China shares as tech rout hits Hong Kong

Today News ||

Article content

SHANGHAI — China shares slipped on Thursday as gloomy economic prospects weighed, while Hong Kong’s benchmark index tracked a steep Wall Street selloff after index heavyweight Tencent reported disappointing results.

** At midday, China’s blue-chip CSI300 index was down 0.25% at 3,981.75 points, narrowing earlier losses. The Shanghai Composite index slipped 0.08% to 3,083.39 points.


** The CSI300 financial sector sub-index fell 0.34%, the consumer staples sector dropped 1.15%, and the healthcare sub-index lost 0.77%.

Advertisement 2

Article content

** Consumer firms have been hit by a darkening economic outlook caused in part by strict zero-COVID rules, casting doubt over how much the country will contribute to future global trade and investment.

** Chinese H-shares listed in Hong Kong fell 2.28% to 6,927.44, while the Hang Seng Index was down 2.25% at 20,179.30.

** Tech firms led losses in Hong Kong, with the Hang Seng Tech index down 3.4% at midday, with Tencent Holdings dropping 6.62%.

** Tencent, which been battered by a regulatory crackdown on large internet firms, said on Wednesday that its quarterly profit halved from a year ago and revenues stagnated.

RELATED:  JetBlue makes all-cash offer for Spirit Airlines, complicating planned Frontier tie-up

** The smaller Shenzhen index was flat, the start-up board ChiNext Composite index was 0.12% weaker and Shanghai’s tech-focused STAR50 index was up 1.51%​.

Advertisement 3

Article content

** Offering some hope for investors, authorities in Shanghai on Thursday announced more plans for exiting lockdowns.

** Relaxing COVID restrictions are a potential catalyst for foreign interest in A-shares, said Andy Maynard, head of equities at China Renaissance in Hong Kong.

** “What else could be bad that isn’t already priced into this market?” he said.

** So far this year, the Shanghai stock index is down 15.3%​ and the CSI300 has fallen 19.4%, while China’s H-share index listed in Hong Kong is down 15.9%.

** Foreign investors were net buyers of A-shares on Thursday, with Refinitiv data showing inflows of more than 2.7 billion yuan ($399.54 million) through Stock Connect.

($1 = 6.7578 Chinese yuan) (Reporting by Andrew Galbraith)



Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

More Economy Business News Updates of Today Check Below

Today News || Business Today || World News || Headlines Today || Health || Technology News || Education News


Show More

Related Articles

Back to top button