China stocks slip on Omicron variant worries

** The Omicron coronavirus variant has spread around the world even as more countries imposed travel restrictions to try to seal themselves off. ** Guosheng Securities said the new variant has become an uncertainty for markets and investors should remain cautious in the short term and wait for the other shoe to drop.

China shares slipped on Monday as concerns lingered about the newly discovered and possibly vaccine-resistant coronavirus variant, while Meituan and gambling stocks dragged Hong Kong equities lower. The CSI300 index fell 0.2% to 4,852.46 by the end of the morning session, while the Shanghai Composite Index was unchanged at 3,562.70.

The Hang Seng index dropped 0.5% to 23,956.43. The Hong Kong China Enterprises Index lost 0.3% to 8,550.13. ** The Omicron coronavirus variant has spread around the world even as more countries imposed travel restrictions to try to seal themselves off.

** Guosheng Securities said the new variant has become an uncertainty for markets and investors should remain cautious in the short term and wait for the other shoe to drop. ** Zheshang Securities said the new variant would have limited impact on A shares due to China's strict anti-virus measures.

** Tourism stocks slumped 2.8% due to a resurgence of COVID-19 infections in China and the new variant. ** Real estate developers and energy shares dropped more than 1.2% each.

** COVID-19-related healthcare stocks rose, jumping as much as 15%, with some companies saying their test kits remained effective for the new variant. ** The new energy sub-index and the defense sub-index gained 1.8% and 2.7%, respectively.

** Profits at China's industrial firms grew at a faster pace in October, providing a buffer for a faltering economy battered by soaring raw material prices. ** In Hong Kong, food delivery giant Meituan slumped nearly 8%, dragging down the Hang Seng Index 169 points.

** Meituan plunged the most in four months after it forecast a weaker outlook following its largest-ever quarterly loss in three years. ** "We believe the short-term impact of the pandemic, as well as macro-headwinds, does not alter the secular momentum of food delivery," said Jefferies.

** Gambling stocks listed in Hong Kong tumbled nearly 8% after Macau police said on Sunday they had arrested 11 people in an investigation into an illegal gambling and money-laundering syndicate.

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