Markets

Chinese stocks fall weighed down by banks, developers; Hong Kong slips

SHANGHAI: China stocks extended losses on Friday, led by the fall in banking and real estate counters.

The CSI300 index fell 1.4 per cent to 3,025.14 at the end of the morning session, while the Shanghai Composite Index lost 1.0 per cent to 2,510.78. The two indexes were on track for their fifth and fourth straight days of losses, respectively.

"The recent sluggishness in the A-share market is partly due to the continued sharp corrections in external markets, in particular in the US stock market," said Zhu Junchun, an analyst with Lianxun Securities.

The sentiment was also curbed after the United States accused Beijing of orchestrating the hacking of government agencies and companies around the world.

Main sectors fell across the board, led by sectoral indexes of banks and real estate firms.

China's central bank said on Thursday it will strengthen the oversight of the reserves that commercial banks and other lenders are required to deposit to ensure timely and full payment.

In Hong Kong, the Hang Seng index dropped 0.2 per cent to 25,570.18, while the Hong Kong China Enterprises Index lost 0.7 per cent to 10,017.64.

Tencent Holdings Ltd's shares jumped by as much as 4.2 per cent on Friday after a regulatory official said that some new games have been cleared for sale after a lengthy freeze in approvals.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.27 per cent, while Japan's Nikkei index was down 1.33 per cent.

The yuan was quoted at 6.89 per US dollar, 0.09 per cent weaker than the previous close of 6.8835.

The largest per centage gainers in the main Shanghai Composite index were shares of China Sports Industry Group Co Ltd, up 9.99 per cent, followed by Hunan Salt Industry Co Ltd, gaining 9.95 per cent, and Shanghai U9 Game Co Ltd, up 9.8 per cent.

The largest per centage losers in the Shanghai index were shares of Dalian Sunasia Tourism Holding Co Ltd, down 10.01 per cent, followed by Guangdong Songfa Ceramics Co Ltd , losing 10 per cent, and Shanghai Trendzone Construction Decoration Group Co Ltd, down by 7.28 per cent.

So far this year, the Shanghai stock index is down 23.31 per cent, while China's H-share index is down 13.8 per cent. Shanghai stocks have declined 2.01 per cent this month.

As of 04:14 GMT, China's A-shares were trading at a premium of 18.34 per cent over the Hong Kong-listed H-shares.

Original Article

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