China stocks fall on real estate sector worries, COVID-19 outbreaks

  • 1/14/2022
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SHANGHAI, Jan 14 (Reuters) - China stocks fell on Friday as real estate sector woes continued to weigh on investor sentiment, while recent COVID-19 outbreaks in the country added to worries about the effect on the economy. ** The CSI300 index (.CSI300) fell 0.6%, to 4,737.93 points at the end of the morning session, while the Shanghai Composite index (.SSEC) lost 0.6%, to 3,534.17 points. ** The Hang Seng index (.HSI) dropped 1.0%, to 24,179.16 points, while the Hong Kong China Enterprises index (.HSCE) lost 1.5%, to 8,475.36. ** For the week, the CSI300 index was down 1.8%; the Hang Seng index is set to jump the most in 12 weeks, rising 2.9% as of the midday break. ** China"s exports and imports grew more slowly in December, but exports came in just above expectations due to ongoing solid global demand. read more ** As the country battles with its latest local COVID-19 outbreaks, the eastern financial hub of Shanghai suspended some tourism activities. The tourism subindex (.CSI930633) declined 1.8%. read more ** "Recent COVID flare-ups in a few large cities are increasing the pressure on an already slowing economy," HSBC said in a note. ** "We now expect the central bank to add more stimulus by delivering a 10bp cut in key policy rates, most likely in the medium-term lending facilities (MLF) rate, which is most relevant to the real economy," HSBC added. ** Real estate developers (.CSI000952) dropped for the fourth straight session, as more cash-strapped developers scrambled to avert defaults or raise money. read more ** Investment banks and brokerages (.CSI399975) retreated 1.6%, with CITIC Securities (600030.SS) down 2.7% following a share placement plan. ** Energy stocks (.CSIEN) lost 2.4%, with coal miners (.CSI000820) down 3%. ** In Hong Kong, the Hang Seng Tech index (.HSTECH) fell 1.8%, with Alibaba Group (9988.HK) and Meituan (3690.HK) down 3.8% and 4.2%, respectively, tracking Wall Street losses after hawkish U.S. Federal Reserve remarks. read more ** China Evergrande Group (3333.HK) added 1.2% as it secured a crucial approval from onshore bondholders to delay payments on one of its bonds. Reporting by Shanghai Newsroom; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles. More from Reuters

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