China shares down as consumer firms weigh; Hang Seng slips 0.65%

China's main equity gauges fell on Wednesday, as the consumer staples and financials sectors dragged and as foreign investors sold A-shares, with recent strong economic data continuing to fuel investor concerns over possible policy tightening. ** At the midday break, the Shanghai Composite index was down 0.53% at 3,464.54 points.

Reuters | Beijing | Updated: 07-04-2021 10:23 IST | Created: 07-04-2021 10:11 IST
China shares down as consumer firms weigh; Hang Seng slips 0.65%
Representative Image Image Credit: Pixabay

China's main equity gauges fell on Wednesday, as the consumer staples and financials sectors dragged and as foreign investors sold A-shares, with recent strong economic data continuing to fuel investor concerns over possible policy tightening.

At the midday break, the Shanghai Composite index was down 0.53% at 3,464.54 points. The blue-chip CSI300 index was down 1.09%. ** Consumer Staples firms led losses, falling 3% after rallying nearly 6.5% last week. The financial sector sub-index dipped 0.61% and healthcare firms shed 1.11%. Index heavyweight distiller Kweichow Moutai Co Ltd, a favorite of foreign investors, was the biggest drag on Wednesday, falling 3.12%. Fellow distiller Wuliangye Yibin Co Ltd fell 4.73%. Foreign investors were net sellers of A-shares on Wednesday, with Refinitiv data indicating outflows via the Stock Connect program through Hong Kong. Analysts say that strong economic data could prompt authorities to tighten policy, putting pressure on equity valuations.

"We can't rule out the possibility that policymakers may move as early as late this year to tighten monetary policy, potentially triggering knock-on effects in both the real economy and financial markets," Christina Zhu, an economist at Moody's Analytics said in a note. Chinese H-shares listed in Hong Kong fell 1.07% to 11,097.9, while the Hang Seng Index was down 0.65% at 28,751.38. The smaller Shenzhen index was down 0.79%, the start-up board ChiNext Composite index was weaker by 1.36% and Shanghai's tech-focused STAR50 index was down 0.46%​. ** The yuan was quoted at 6.5418 per U.S. dollar, 0.01% weaker than the previous close of 6.5409. In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 0.2% while the IT sector fell 1.8%.

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


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

IN CASE YOU MISSED IT–Schedule of Reuters features from this week

Every week, Reuters journalists produce scores of multimedia features and human-interest stories from around the world. Below are some stories from this week selected by our editors, as well as explanatory context and background to help you...

INSIGHT-Climate scientists swap fieldwork for finance

Environmental scientist Laura Garcia Velez cut her teeth on projects to help Ethiopian farmers insure crops for drought and connect remote Colombian communities to the electricity grid before working for conservation campaigners WWF.Now she...

Big business seeks unified, market-based approaches ahead of climate summit

Corporate executives and investors say they want world leaders at next weeks climate summit to embrace a unified and market-based approach to slashing their carbon emissions.The request reflects the business worlds growing acceptance that t...

U.S. seeks to polish tarnished reputation with new climate change pledges ahead of Earth Day

The United States hopes to restore its shattered credibility when it hosts a climate change summit next week by pledging to cut its greenhouse emissions by at least half and securing agreements from allies for faster reductions, according t...

Give Feedback