SHANGHAI: Technology and semiconductor giants dragged Chinese stocks lower on Monday, as trade resumed after a week-long holiday with the market being dominated by concerns over the latest US crackdown on the chip-making industry and fresh COVID-19 cases.
** The blue-chip CSI 300 Index dropped 0.9% by the end of the morning session, and the Shanghai Composite Index lost 0.4% to test the key 3,000 points psychological line.
** The Hang Seng Index declined 2.5%, while the Hang Seng China Enterprises Index retreated 2.6%.
China stocks track global peers lower before holiday
** Global stocks skidded lower after a surprise drop in US unemployment quashed any thought of a pivot on policy tightening ahead of an inflation reading, which is expected to see core prices move higher again.
** China’s domestic COVID-19 situation worsened over the National Day Golden Week, during which holiday tourist trips also went down 18.2% from last year as strict anti-virus rules discouraged movement.
** Furthermore, a private-sector business survey showed on Saturday that China’s services activity in September contracted for the first time in four months.
** An index measuring China’s semiconductor firms tumbled nearly 6%, and Shanghai’s tech-focused board STAR Market declined 3.3%.
** The Joe Biden administration published a sweeping set of export controls on Friday, including a measure to cut China off from certain semiconductor chips made anywhere in the world with US equipment, to slow Beijing’s technological and military advances.
** However, Chinese real estate developers rose 2.7% following the country’s latest measures to prop up the distressed property sector.
** Beijing is ramping up efforts to boost home sales by easing mortgage rate floors, cutting interest rate on provident fund loans and offering individual income tax rebates for home buyers.
** Premier Li Keqiang said China will strive to consolidate its economic recovery as the country’s development faces difficulties and challenges.
** Energy suppliers jumped 3.5%, as Chinese industry players catched up with global peers’ gains made over the holiday.
** Tech firms listed in Hong Kong tumbled 3.5%, with food-delivery giant Meituan down nearly 6%.
Comments
Comments are closed.