China shares down as consumer firms weigh; Hang Seng slips 0.65%

China's main equity gauges fell on Wednesday, as the consumer staples and financials sectors dragged and as foreign investors sold A-shares, with recent strong economic data continuing to fuel investor concerns over possible policy tightening. ** At the midday break, the Shanghai Composite index was down 0.53% at 3,464.54 points.

Reuters | Beijing | Updated: 07-04-2021 10:23 IST | Created: 07-04-2021 10:11 IST
China shares down as consumer firms weigh; Hang Seng slips 0.65%
Representative Image Image Credit: Pixabay

China's main equity gauges fell on Wednesday, as the consumer staples and financials sectors dragged and as foreign investors sold A-shares, with recent strong economic data continuing to fuel investor concerns over possible policy tightening.

At the midday break, the Shanghai Composite index was down 0.53% at 3,464.54 points. The blue-chip CSI300 index was down 1.09%. ** Consumer Staples firms led losses, falling 3% after rallying nearly 6.5% last week. The financial sector sub-index dipped 0.61% and healthcare firms shed 1.11%. Index heavyweight distiller Kweichow Moutai Co Ltd, a favorite of foreign investors, was the biggest drag on Wednesday, falling 3.12%. Fellow distiller Wuliangye Yibin Co Ltd fell 4.73%. Foreign investors were net sellers of A-shares on Wednesday, with Refinitiv data indicating outflows via the Stock Connect program through Hong Kong. Analysts say that strong economic data could prompt authorities to tighten policy, putting pressure on equity valuations.

"We can't rule out the possibility that policymakers may move as early as late this year to tighten monetary policy, potentially triggering knock-on effects in both the real economy and financial markets," Christina Zhu, an economist at Moody's Analytics said in a note. Chinese H-shares listed in Hong Kong fell 1.07% to 11,097.9, while the Hang Seng Index was down 0.65% at 28,751.38. The smaller Shenzhen index was down 0.79%, the start-up board ChiNext Composite index was weaker by 1.36% and Shanghai's tech-focused STAR50 index was down 0.46%​. ** The yuan was quoted at 6.5418 per U.S. dollar, 0.01% weaker than the previous close of 6.5409. In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 0.2% while the IT sector fell 1.8%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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