China stocks fall on real estate sector worries, COVID-19 outbreaks

China stocks fell on Friday as real estate sector woes continued to weigh on investor sentiment, while recent COVID-19 outbreaks in the country added to worries about the effect on the economy.

China stocks fell on Friday as real estate sector woes continued to weigh on investor sentiment, while recent COVID-19 outbreaks in the country added to worries about the effect on the economy. ** The CSI300 index fell 0.6%, to 4,737.93 points at the end of the morning session, while the Shanghai Composite index lost 0.6%, to 3,534.17 points.

** The Hang Seng index dropped 1.0%, to 24,179.16 points, while the Hong Kong China Enterprises index lost 1.5%, to 8,475.36. ** For the week, the CSI300 index was down 1.8%; the Hang Seng index is set to jump the most in 12 weeks, rising 2.9% as of the midday break.

** China's exports and imports grew more slowly in December, but exports came in just above expectations due to ongoing solid global demand. ** As the country battles with its latest local COVID-19 outbreaks, the eastern financial hub of Shanghai suspended some tourism activities. The tourism subindex declined 1.8%.

** "Recent COVID flare-ups in a few large cities are increasing the pressure on an already slowing economy," HSBC said in a note. ** "We now expect the central bank to add more stimulus by delivering a 10bp cut in key policy rates, most likely in the medium-term lending facilities (MLF) rate, which is most relevant to the real economy," HSBC added.

** Real estate developers dropped for the fourth straight session, as more cash-strapped developers scrambled to avert defaults or raise money. ** Investment banks and brokerages retreated 1.6%, with CITIC Securities down 2.7% following a share placement plan.

** Energy stocks lost 2.4%, with coal miners down 3%. ** In Hong Kong, the Hang Seng Tech index fell 1.8%, with Alibaba Group and Meituan down 3.8% and 4.2%, respectively, tracking Wall Street losses after hawkish U.S. Federal Reserve remarks.

** China Evergrande Group added 1.2% as it secured a crucial approval from onshore bondholders to delay payments on one of its bonds.

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