SHANGHAI: China stocks on Wednesday tracked a slump in global markets, after hotter-than-expected US inflation data fuelled bets for more aggressive rate hikes by the Federal Reserve.
** The blue-chip CSI 300 Index lost 1.2% by the end of the morning session, while the Shanghai Composite Index was down 1%.
** The Hang Seng Index tumbled 2.6%, and the Hang Seng China Enterprises Index dropped 2.5%.
** Other Asian shares tumbled after Wall Street saw its steepest fall in two years, as US CPI data for August dashed hopes for a peak in inflation.
** US Labor Department data showed the headline Consumer Price Index gained 0.1% on a monthly basis versus expectations for a 0.1% decline.
** “The overnight plunge in the US market dented sentiment in China’s A-shares,” said Wang Mengying, a stock index futures analyst at Nanhua Futures, adding that investors will continue to focus on domestic COVID-19 outbreaks and anti-virus measures, and the implementation of pro-growth policies.
** New energy shares slumped 2.2%, automobiles went down 2%, while shares in healthcare and consumer discretionary lost 1.2% and 1.6%, respectively.
China stocks rise on modest CPI data, stimulus hopes
** Bucking the trend, real estate developers added 0.8%. ** Tech firms listed in Hong Kong tumbled 3%, with e-commerce giant Alibaba Group down 4.4% to become the biggest drag on the Hang Seng benchmark.
** Financials shares declined 2.2%, with index heavyweights HSBC Holdings and AIA Group down 2.7% each.
** China International Capital Corp (CICC), slumped roughly 9% in both mainland and Hong Kong markets, after the top broker proposed a rights issue to support business development and boost capital.
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