China stocks fall as dire economic activity data dents sentiment
** Shanghai set out plans for return of more normal life from June 1 and the end of a painful COVID-19 lockdown that has lasted more than six weeks. ** To prop up the property sector, the central bank cut the lower limit of interest rates on home loans by 20 basis points based on the Loan Prime Rates (LPRs) for purchases of their first homes.
- Country:
- China
China stocks fell on Monday after data showed that the country's economic activity cooled sharply in April due to COVID-19 lockdowns, with investors looking past Shanghai's June reopening plan and a mortgage rate cut for first-time homebuyers. The CSI300 index fell 0.8% to 3,956.01 at the end of the morning session, while the Shanghai Composite Index lost 0.5% to 3,068.48.
The Hang Seng index dropped 0.4% to 19,825.12 points. The Hong Kong China Enterprises Index lost 0.5% to 6,773.78. ** China's April retail sales plunged 11.1% on the year, almost twice the projected drop, while industrial output dropped 2.9%, compared with analysts' forecast of a slight increase.
** Meanwhile, new bank lending in China hit the lowest in nearly four-and-a-half years in April as the pandemic jolted the economy and weakened credit demand. ** Shanghai set out plans for the return of a more normal life from June 1 and the end of a painful COVID-19 lockdown that has lasted more than six weeks.
** To prop up the property sector, the central bank cut the lower limit of interest rates on home loans by 20 basis points based on the Loan Prime Rates (LPRs) for purchases of their first homes. ** "Although we expect this cut to provide a benefit, the positive impact could be quite limited, as stringent anti-COVID-19 measures appear set to continue for an unspecified time," Nomura analysts said in a note.
** "We expect more policy actions to follow in the next few months," said Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management. ** China's central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged on Monday, while some banks expect the lending benchmark loan prime rate (LPR) could be lowered at the monthly fixing on Friday.
** Property developers gained 1%, while healthcare firms lost 2%, and automobiles declined 1.7%. ** Tech giants trading in Hong Kong edged down 0.3% after opening up 2.4%, with food-delivery firm Meituan tumbling 3.6% to become the biggest drag on the Hang Seng benchmark.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
Zhou Guanyu set to shine in Chinese Formula 1 race in Shanghai regardless of winner
Louis Vuitton holds 'Voyager' fashion show in Shanghai
Blinken to meet businesses in Shanghai as he kicks off a tough China trip
Blinken meets Chinese officials in Shanghai for contentious talks
Blinken discusses Chinese trade practices in meetings with Shanghai officials