China shares end lower as Shanghai's new COVID curbs, growth stocks weigh

Chinese shares snapped a four-session gaining streak to close down on Thursday, with growth stocks leading declines, after parts of Shanghai began imposing new COVID-19 restrictions. The blue-chip CSI300 index ended 1.1% lower at 4,175.67, while the Shanghai Composite Index lost 0.8% to 3,238.95.


Reuters | Updated: 09-06-2022 14:16 IST | Created: 09-06-2022 14:12 IST
China shares end lower as Shanghai's new COVID curbs, growth stocks weigh
Representative Image Image Credit: Pixabay

Chinese shares snapped a four-session gaining streak to close down on Thursday, with growth stocks leading declines after parts of Shanghai began imposing new COVID-19 restrictions.

The blue-chip CSI300 index ended 1.1% lower at 4,175.67, while the Shanghai Composite Index lost 0.8% to 3,238.95. The Hang Seng index fell 0.7% to 21,869.05, while the China Enterprises Index lost 1.0% to 7,606.35 points.

** Residents of Shanghai's Minhang district were ordered to stay home for two days in a bid to control coronavirus transmission risks, with daily national COVID cases also rising slightly during the week. ** "The uncertainty over COVID outbreaks means Chinese equities are still likely to be susceptible to start-stop cycles," BNP Paribas analysts said in a note.

** China's exports grew at a double-digit pace in May, shattering expectations, while imports expanded for the first time in three months as Shanghai and Beijing relaxed curbs. ** To revive confidence among multinational companies, Shanghai officials are holding multiple meetings with foreign firms and easing a key border requirement for overseas workers.

** Asian stocks fell as investors worried about the outlook for more rate rises ahead of a key meeting of the European Central Bank later in the day. ** Despite a decline, foreign investors were net buyers of China stocks on Thursday, with Refinitiv data showing inflows of more than 6.2 billion yuan ($930 million) through the Stock Connect program.,

** Growth stocks, which led a recent rebound, dropped on profit-taking. Semiconductors tumbled 3.4% and new energy firms went down 1.6%. ** Shares in tourism, healthcare, and automobiles ended more than 2% lower.

** Real estate developers jumped 2% and banks rose 1.4%, while construction engineering companies edged up 1.2%. ** Land demand from China's developers mostly decreased in the first round of auctions held by major cities this year, with fewer cities seeing price gains, but sales in Shanghai rebounded following its exit from lockdown.

** Tech giants listed in Hong Kong closed down 1.4%, after jumping 4.8% on Wednesday following a series of positive developments in the sector. ** "The market is still concerned about the regulation of data, but based on recent good news, the clampdown over the past year seems to have come to an end," said Linus Yip, chief strategist at First Shanghai Securities.

** Mainland developers trading in Hong Kong gained 1.8%.

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

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