China stocks close down as COVID surge rattles investors

** China kept benchmark lending interest rates unchanged for the fourth consecutive month on Tuesday, matching the forecasts of most market watchers who nevertheless expect further monetary easing to prop up a slowing economy. ** Chinese property developers Agile Group and CIFI Holdings slumped roughly 17% each, after they planed to raise money via share placement to repay existing debt.

China stocks extended losses on Tuesday as the country grappled with surging COVID-19 cases, while investors took no comfort as the country also kept benchmark lending interest rates unchanged.

** The blue-chip CSI 300 index closed down 1.7% and the Shanghai Composite index lost 1.1%. ** Hong Kong's Hang Seng index dropped 1.3%, while the Hang Seng China Enterprises index declined 2%.

** Cities across China scrambled to build hospital beds and fever screening clinics on Tuesday, while the United States said that it hoped the country can address the current COVID-19 outbreak as the toll of the virus is a global concern due to the size of the Chinese economy. ** "A reopening from COVID-19 control will finally push the economy to largely recover, but it still has an adverse impact on the economy in the short term," Central China Securities analysts said in a note.

** "The period might last two to three months, so the market will face near-term social and economic pressure." ** The World Bank cut its China growth outlook for this year and next, citing the impact of the abrupt loosening of strict COVID-19 containment measures and persistent property sector weakness.

** Shares in consumer staples lost 3.2%, while tourism-related firms retreated 2.7%. Both indexes jumped in previous sessions on reopening bets. ** China kept benchmark lending interest rates unchanged for the fourth consecutive month on Tuesday, matching the forecasts of most market watchers who nevertheless expect further monetary easing to prop up a slowing economy.

** Chinese property developers Agile Group and CIFI Holdings slumped roughly 17% each, after they planed to raise money via share placement to repay existing debt. ** China's CSI 300 Real Estate index slumped 2.9% and Hong Kong's Hang Seng Mainland Properties index plunged 6%.

** Tech giants listed in Hong Kong lost 3.1%. The index lost more than 8% from a recent peak seen on Dec. 9.