SHANGHAI: China and Hong Kong stocks fell on Tuesday to their lowest in more than two months, as fears lingered about contagion from the Silicon Valley Bank’s (SVB) collapse.
** China’s blue-chip CSI300 Index was down 0.8% by the lunch break, after touching its lowest since early January in early trade. The Shanghai Composite Index lost 0.9%.
** Hong Kong’s benchmark Hang Seng index and the China Enterprises index both slumped 1.8%.
** Banking shares fell in China and Hong Kong, as fears of a US banking crisis knocked down Asian markets despite moves by Washington to shore up confidence after the collapse of Silicon Valley Bank. The S&P Banking Index slumped 7% overnight.
** Chinese financial shares slid 1.2% and bank shares lost 0.7%.
** In Hong Kong, Hang Seng’s finance subindex tumbled 2.6%, with HSBC Holdings down 5.1% and AIA Group losing 3.7%.
** Market participants also digested news that Chinese President Xi Jinping is planning to travel to Russia to meet Vladimir Putin as soon as next week. Meanwhile, US President Joe Biden said on Monday after unveiling a submarine deal to counter China that he expected to talk to Xi soon, but would not say when.
** Tech giants listed in Hong Kong fell 2.1%, with Alibaba shedding 3.7% and Meituan down 2.8%.
Chinese shares jump on recovery optimism
** China’s tourism stocks, airline shares and hotel operators fell, even after news that China would reopen its borders to foreign tourists by restoring the issuance of all types of visas from Wednesday.
** China’s growth will remain meagre as the economy is in a process of “structural deceleration”, said Alicia Garcia Herrero, chief economist Asia Pacific at Natixis.
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