SHANGHAI: China stocks ended down for a third straight session on Monday on COVID-19 flare-ups and global recession concerns, although realty companies surged as a source told Reuters that Beijing was planning to provide them financial support.
The blue-chip CSI300 fell 0.6% to 4,212.64, while the Shanghai Composite lost 0.6% to 3,250.39 points.
The Hang Seng index fell 0.2% to 20,562.94, while the China Enterprises index lost 0.4% to 7,077.09 points.
Mainland China reported 800 new coronavirus cases for Sunday.
Other Asian stocks also lost ground, as worries about a global economic downturn sapped investors’ risk appetite.
“A-shares appeared relatively weak since July, following a strong rebound,” said CICC in a note, adding that investors should focus on the potential upcoming July Politburo meeting.
China will set up a real estate fund to help developers resolve a crippling debt crisis, aiming for a war chest of up to 300 billion yuan ($44.4 billion), according to a state bank official with direct knowledge of the matter.
The Hang Seng Mainland Properties Index jumped 3.2%, and the CSI 300 Real Estate Index rose 1.9%.
Shares in new energy firms, automobiles and communications equipment makers declined more than 2%.
Meng Lei, China Equities Strategist at UBS Securities said the market is likely to enter a consolidation stage near term, citing broad-based second-quarter earnings downgrades, no significant fund inflows and relative low level of new mutual funds issuance.
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