China stocks fall as investors see less chance of quick recovery in economy
.Trim()Reuters | Beijing | Updated: 14-05-2020 11:18 IST | Created: 14-05-2020 10:18 IST
China stocks fell on Thursday as investors seemed less confident of a swift recovery in the economy while awaiting more active stimulus policies to cushion the blow from the COVID-19 pandemic.
** At the midday break, the Shanghai Composite index was down 0.47% at 2,884.41. ** China's blue-chip CSI300 index shed 0.57%, with its financial sector sub-index lower by 0.81%, the consumer staples sector down 0.87%, the real estate index down 0.91%. Its healthcare sub-index was up 0.03%.
** Chinese H-shares listed in Hong Kong fell 1.21% to 9,716.81, while the Hang Seng Index was down 1.11% at 23,912.89. ** The smaller Shenzhen index was down 0.18% and the start-up board ChiNext Composite index was weaker by 0.19%.
** China needs more active fiscal policy as pressure on its economy is still increasing, according to an article by Finance Minister Liu Kun published in the official People's Daily. ** "Chinese policymakers have been assuring the market with more active policies to boost the economy but investors are awaiting the implementation to support their confidence," said Zhang Gang, an analyst with Central China Securities.
** Chinese investors are also worried about more selloff in Wall Street indexes due to warnings from the U.S. Federal Reserve of an "extended period" of weak economic growth, said Zhang. ** Continuous weak demand from Europe and the U.S. can hurt China's economy even though the Asian country is on the path of a full recovery of production, he added.
** China reported 3 new COVID-19 cases for May 13, down from 7 cases a day earlier. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.91% while Japan's Nikkei index was down 0.72%.
** The yuan was quoted at 7.0969 per U.S. dollar, 0.08% weaker than the previous close of 7.091.