China stocks extend losses despite measures to support economy

China stocks tracked losses in global markets on Thursday over inflation concerns and recession risks, even as the country seeks to arrest the fall in its currency and shore up its economy. ** The blue-chip CSI300 index ended almost flat, after surging as much as 1.2% in morning trade, while the Shanghai Composite Index lost 0.1%.


Reuters | Beijing | Updated: 29-09-2022 15:42 IST | Created: 29-09-2022 15:36 IST
China stocks extend losses despite measures to support economy
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China stocks tracked losses in global markets on Thursday over inflation concerns and recession risks, even as the country seeks to arrest the fall in its currency and shore up its economy.

** The blue-chip CSI300 index ended almost flat, after surging as much as 1.2% in morning trade, while the Shanghai Composite Index lost 0.1%. Both indexes are near their lowest levels in about five months. ** The Hang Seng index shed 0.5%, and the Hong Kong China Enterprises Index lost 0.8%.

** Chinese yuan also pared some early gains, with the U.S. dollar clawing back from a recent dip as relief following the Bank of England's intervention in bond markets faded. ** Chinese stock market rose in morning trade tracking Asian peers, following an overnight Wall Street rebound, and helped by a steadier yuan after the People's Bank of China warned against one-way currency bets, stressing that the yuan's stability was a top priority.

** But fresh concerns over surging overseas rates have curtailed the Chinese central bank's ability for further monetary easing, raising concerns about money outflows at a time risk assets globally have been tumbling. ** On Thursday, the state-owned Securities Times newspaper said in a front-page commentary that the yuan was unlikely to continue depreciating rapidly.

** China's finance ministry plans to issue about 2.5 trillion yuan ($347.4 billion) in government bonds in the fourth quarter, and urged local governments to complete issuing the roughly 500 billion yuan in special bonds by the end of October under carryover quotas, two sources told Reuters. ** Energy and healthcare stocks rose more than 1.5% each, while banking and property shares fell 1.2% and 1.8%, respectively.

** Tourism, media and liquor stocks weakened, as worries over COVID-19 outweighed optimism ahead of the Golden Week holiday. ** In Hong Kong, property shares slid further. An index tracking mainland developers listed in Hong Kong fell 4.8% to a record low, following Wednesday's 6.4% slump.

** Shares of CIFI Holdings fell further, even as the Chinese property developer said it was trying to solve payment difficulties following a report that it defaulted on a debt.

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

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