China stocks advance, Hong Kong falls on NYSE's U-turn to delist 3 Chinese telecoms
Mainland China stocks advanced further on Thursday, with the blue-chip index hitting a fresh 13-year high, although Hong Kong shares came under pressure as the New York Stock Exchange said it would delist three Chinese telecom companies.Reuters | Shanghai | Updated: 07-01-2021 10:29 IST | Created: 07-01-2021 10:21 IST
Mainland China stocks advanced further on Thursday, with the blue-chip index hitting a fresh 13-year high, although Hong Kong shares came under pressure as the New York Stock Exchange said it would delist three Chinese telecom companies. ** At the midday break, the Shanghai Composite index was up 0.37% at 3,563.85 points, while China's blue-chip CSI300 index was up 1.01% to 5,472.38, the highest level since January 2008. ** The smaller Shenzhen index was up 0.22%, the start-up board ChiNext Composite index was higher by 0.78% and Shanghai's tech-focused STAR50 index was down 1.73%.
** Chinese H-shares listed in Hong Kong fell 1.3% to 10,758.31, while the Hang Seng Index was down 0.43% at 27,571.95. ** Hong Kong shares fell after the New York Stock Exchange said on Wednesday it would delist three Chinese telecom companies, confirming its latest U-turn on the matter.
** The American bourse's announcement came a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings. ** Hong Kong shares of China Unicom led losses among the three telecom stocks, falling 8.76% at midday, the biggest loser on the Hang Seng in the morning session. China Mobile fell 6.97% and China Telecom Corp dropped 8.48% at noon.
** The Trump administration is considering adding tech giants Alibaba and Tencent to a blacklist of firms allegedly owned or controlled by the Chinese military, two people familiar with the matter said. ** "With the incoming Biden administration, hopes are running high there will be fewer policy flip-flops in U.S.-China issues. Even then, the recent fiasco over the NYSE's plans to delist three Chinese telecom companies suggest that nothing should be taken for granted," said Selena Ling, head of strategy and research at OCBC Bank.
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