China stocks fall after hawkish Fed minutes; property, consumption drop

  • 1/6/2022
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SHANGHAI, Jan 6 (Reuters) - China stocks fell on Thursday, tracking a global slump after Federal Reserve meeting minutes pointed to a faster-than-expected rise in U.S. interest rates, led by losses in real estate developers and consumer staples. The CSI300 index (.CSI300) fell 0.9%, to 4,826.06 points at the end of the morning session, while the Shanghai Composite Index (.SSEC) lost 0.2%, to 3,589.50 points. The Hang Seng index (.HSI) dropped 0.4%, to 22,824.60 points. The Hong Kong China Enterprises Index (.HSCE) lost 0.4%, to 7,984.28. ** A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month. read more ** The more hawkish than expected views of U.S. central bank officials pushed U.S. Treasury yields higher, potentially draining liquidity from emerging markets. ** Refinitiv data showed outflows of more than 3.2 billion yuan through the Northbound legs of the Stock Connect programme (.NQUOTA.ZK), (.NQUOTA.SH), showing overseas investors were net sellers of A-shares on Thursday. ** Activity in China"s services sector expanded at a faster pace in December amid higher demand and easing inflationary pressure but continuing small-scale COVID-19 outbreaks weighed on the outlook, a private sector survey showed. read more ** China will ensure stable economic growth in the first quarter of 2022, the government will implement greater tax and fee cuts for businesses and would provide targeted support for COVID-affected sectors, Premier Li Keqiang said on Wednesday. ** Real estate developers (.CSI000952), consumer staples (.CSICS), transport stocks (.CSI000957) and media firms (.CSI399971) went down between 1.7% and 2.2%. ** Construction engineering shares (.CSI399995) surged 3.7%, while non ferrous metal (.CSI000811) gained 1.2%. ** In Hong Kong, the Hang Seng Tech Index (.HSTECH) lost 0.6%, while Alibaba Group (9988.HK) and Meituan (3690.HK) rebounded from previous session"s slump and rose 3.6% and 0.5% respectively. ** Healthcare stocks (.HSCIH) dropped 2.6%, with WuXi Biologics (2269.HK) down 4.2% to become the second biggest intraday decliner on the Hang Seng Index. ** The utilities subindex (.HSCIU) declined 2.7%.

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