Shanghai stocks fall for third session amid COVID woes; property firms surge

China stocks ended down for a third straight session on Monday on COVID-19 flare-ups and global recession concerns, although realty companies surged as a source told Reuters that Beijing was planning to provide them financial support. The blue-chip CSI300 fell 0.6% to 4,212.64, while the Shanghai Composite lost 0.6% to 3,250.39 points.


Reuters | Shanghai | Updated: 25-07-2022 14:52 IST | Created: 25-07-2022 14:43 IST
Shanghai stocks fall for third session amid COVID woes; property firms surge
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China stocks ended down for a third straight session on Monday on COVID-19 flare-ups and global recession concerns, although realty companies surged as a source told Reuters that Beijing was planning to provide them financial support.

The blue-chip CSI300 fell 0.6% to 4,212.64, while the Shanghai Composite lost 0.6% to 3,250.39 points. The Hang Seng index fell 0.2% to 20,562.94, while the China Enterprises index lost 0.4% to 7,077.09 points.

** Mainland China reported 800 new coronavirus cases for Sunday. ** Other Asian stocks also lost ground, as worries about a global economic downturn sapped investors' risk appetite.

** "A-shares appeared relatively weak since July, following a strong rebound," said CICC in a note, adding that investors should focus on the potential upcoming July Politburo meeting. ** China will set up a real estate fund to help developers resolve a crippling debt crisis, aiming for a war chest of up to 300 billion yuan ($44.4 billion), according to a state bank official with direct knowledge of the matter.

** The Hang Seng Mainland Properties Index jumped 3.2%, and the CSI 300 Real Estate Index rose 1.9%. ** Shares in new energy firms, automobiles, and communications equipment makers declined by more than 2%.

** Meng Lei, China Equities Strategist at UBS Securities said the market is likely to enter a consolidation stage near term, citing broad-based second-quarter earnings downgrades, no significant fund inflows, and relatively low level of new mutual funds issuance. ** The Shanghai Stock Exchange (SSE) vowed to maintain market stability ahead of the politically significant 20th Party Congress later this year.

** China's transport ministry tightened existing rules governing how online ride-hailing firms should handle and share their data with regulators, signaling tighter regulatory scrutiny. ** Tech giants listed in Hong Kong dropped 1.4%, with index heavyweights Alibaba, Tencent and Meituan down between 1.7% and 2.5%.

** Meanwhile, China's securities regulator on Monday denied a Financial Times report that China was planning to sort U.S.-listed Chinese companies into groups based on the sensitivity of the data they hold, bringing them into compliance with U.S. rules.

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

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