China, HK stocks fall on virus, geopolitical risks; CNOOC shines

China and Hong Kong stocks fell on Thursday, extending recent weakness, as prolonged COVID-19 lockdowns and lingering geopolitical risks eroded investor confidence. ** As China doubles down on its zero-COVID policy, anti-virus lockdowns in major cities including Shanghai represent the clear and present danger, investors say. ** During a video speech to the annual Boao Forum for Asia on Thursday, IMF Managing Director Kristalina Georgieva said a more prolonged slowdown in China will have a spillover impact globally.

China and Hong Kong stocks fell on Thursday, extending recent weakness, as prolonged COVID-19 lockdowns and lingering geopolitical risks eroded investor confidence. ** CNOOC is the rare bright spot in the session so far. Its Shanghai-listed shares surged as much as 44% in China debut, as investors sought safety in the oil giant amid lofty energy prices and quickening inflation.

** China's blue-chip CSI300 index fell 1.4%, to 4,014.64 at the end of the morning session, while the Shanghai Composite Index lost 1.6%, to 3,100.74 points. ** In Hong Kong, the Hang Seng index dropped 1.7%, to 20,580.66 points.

** COVID-19 cases remain high in China, showing few signs of a turning point despite stringent virus control measures. Mainland China reported 19,458 new infections - including cases with and without symptoms - for April 20, compared with 19,927 new cases a day earlier. ** As China doubles down on its zero-COVID policy, anti-virus lockdowns in major cities including Shanghai represent the clear and present danger, investors say.

** During a video speech to the annual Boao Forum for Asia on Thursday, IMF Managing Director Kristalina Georgieva said a more prolonged slowdown in China will have a spillover impact globally. ** Delivering a video speech to the same forum, Chinese President Xi Jinping reiterated China's opposition to unilateral sanctions and "long-arm jurisdiction".

** Although Xi didn't directly mention the West's punitive actions against Russia for its invasion of Ukraine, the message underscores the geopolitical risks China faces in dealing with the war. ** Most sectors fell, with investors dumping tech stocks and sought refuge in big-cap financial shares, which rose in China. Shenzhen's startup board ChiNext fell 2%, while Hong Kong's Hang Seng Tech Index slumped 3.6%.