SHANGHAI: Mainland China and Hong Kong stocks ended lower on Monday, with a key index logging its fifth straight losing session, with investors hoping for more policy stimulus from upcoming government meetings amid a weak economic recovery, rising geopolitical tensions and foreign outflows.
At the close, the Shanghai Composite index was down 0.93% at 2,922.45 points, the lowest close since Feb 19. The blue-chip CSI300 index was down 0.85% at 3,401.76 points, booking the fifth straight session of losses.
The losses were led by the property sector, with a sub-index tracking the industry falling 2.74% at the close. The smaller Shenzhen index ended down 1.88% and the start-up board ChiNext Composite index was weaker by 1.621%.
Investors are awaiting the Third Plenum this month, which will focus on policies on further deepening reforms and promoting the modernisation of China.
China’s services activity expanded at the slowest pace in eight months and confidence hit a four-year low in June, a private-sector survey showed last week.
China announced the next step in its anti-dumping investigation into European brandy imports on Friday, ramping up tension on the day the European Commission’s provisional tariffs on Chinese-made electric vehicles take effect.
The weak performance comes even after China’s securities regulator vowed on Friday to clamp down harder on financial fraud, saying it is pushing for harsher punishment against lawbreakers as it seeks to revive confidence in the country’s struggling stock markets. Separately, China’s central bank said on Monday it would start conducting temporary bond repurchase agreements or reverse repos to make open market operations more efficient and keep banking system liquidity ample.
In Hong Kong, at the close of trade, the Hang Seng index was down 275.55 points or 1.55% at 17,524.06 points. The Hang Seng China Enterprises index fell 1.53% to 6,284.73.
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