China stocks fall on foreign outflow concerns, COVID woes

This post was originally published on link to post

Article content

SHANGHAI — China stocks extended losses on Friday, weighed down by foreign fund outflow concerns, COVID-19 woes and elevated geopolitical tensions, while Hong Kong shares fell towards an 11-year low.

** The blue-chip CSI 300 Index had lost 0.9% by the end of the morning session, while the Shanghai Composite Index was down 1.1%. Both indexes were down for a third straight session.

Article content

** The Hang Seng Index and the Hang Seng China Enterprises Index were both down roughly 0.9%.

** For the week, the CSI 300 has lost 2.5% so far, while the Hang Seng Index has plunged 4.1% and is set to log its worst weekly performance in 10 weeks.

Article content

** Asian stocks limped towards a fourth straight weekly decline on expectations of aggressive Fed rate hikes.

** “A-share sentiment set a new YTD (year-to-date) low as trading volume declined further and the earnings revision trend continued to worsen,” Morgan Stanley said in a note.

** “Investor sentiment deterioration is driven largely by ongoing COVID outbreaks, rising geopolitical uncertainties and relatively quiet policy direction ahead of the Party Congress.”

** Semiconductor stocks tumbled 3.2% to lead the declines, while shares of new energy firms, consumer discretionary companies and automobile makers retreated more than 2% each.

** Overshadowed by U.S. President Joe Biden’s headline-grabbing vow that American forces would defend Taiwan against a Chinese attack was his hint at possibly shifting U.S. policy to support the island’s right to self-determination.

** Beijing has sent a team of regulatory officials to Hong Kong to assist the U.S. audit watchdog with onsite audit inspections involving Chinese companies, sources said, as part of a landmark deal between the two countries.

** Tech giants listed in Hong Kong fell more than 2%, with heavyweights Tencent and Meituan shedding 2.3% and 2.2%, respectively, to become the biggest drags on the Hang Seng benchmark. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)