China, Hong Kong stocks dip further ahead of Fed meeting outcome

Chinese shares tumbled for a four straight session on Monday, despite the central bank injecting liquidity, as caution ahead of the Federal Reserve's meeting this week and U.S. President Joe Biden's views on Taiwan forced investors to remain in risk-off mode.


Reuters | Hong Kong | Updated: 19-09-2022 14:42 IST | Created: 19-09-2022 14:35 IST
China, Hong Kong stocks dip further ahead of Fed meeting outcome
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Chinese shares tumbled for a four straight session on Monday, despite the central bank injecting liquidity, as caution ahead of the Federal Reserve's meeting this week and U.S. President Joe Biden's views on Taiwan forced investors to remain in risk-off mode. In Hong Kong, the tech sector's slide weighed on the benchmark index, which hit a half-year low, with investors eyeing the risk of another big interest rate increase from the Fed.

** The Shanghai Composite Index was down 0.35%, recording a fourth-day losing streak. China's blue-chip CSI 300 Index edged down 0.12%. ** Hong Kong's Hang Seng Index fell 1.04%, closing at 18565.97, the lowest since March 15, and the Hang Seng China Enterprises Index slid 2.07%.

** Meanwhile, other Asian markets retreated on Monday as investors braced for a busy week with 13 central bank meetings that are certain to see borrowing costs rise across the globe and some risk of a 100-basis-point hike in the United States. ** Biden said on Sunday in CBS News's 60 Minutes that U.S. forces would defend Taiwan in the event of a Chinese invasion. ** Back home, China is expected to keep lending benchmarks unchanged amid yuan pressure. ** China's central bank lowered the borrowing cost of 14-day reverse repos by 10 basis points on Monday and injected 2 billion yuan ($286.54 million) through 7-day reverse repos and another 10 billion yuan through the 14-day tenor.

** China's August economic data overall is slightly better than expected, although the real estate market is weak, CICC said in a note, adding that the valuation of A-shares is relatively low and the market liquidity is relatively abundant, so the medium-term outlook should not be too pessimistic. ** Chinese chipmakers dropped 1.8% and computer names dropped 2.1%.

** The country's tourism stocks rose 1.9%, and Food & Beverage stocks added 0.9%, ahead of a 7-day national holiday starting from Oct. 1. ** In Hong Kong, the Hang Seng tech index dipped 2.07%.

** Alibaba Group tumbled 3.6% and Meituan declined 1.5%.

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

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