China Stocks Fall as Economic Growth Hits 1-Year Low
China Stocks Fall as Economic Growth Hits 1-Year Low
Zeno Markets 8
SHANGHAI, Oct 18 (Reuters) – China shares fell on Monday as data showed growth in the world’s second-largest economy hit a one-year low, with real estate and consumer staples stocks leading the drop.
The CSI300 index fell 1.4% to 4,863.29 by the end of the morning session, while the Shanghai Composite Index lost 0.4% to 3,559.96.
The Hang Seng index dropped 0.3% to 25,253.57. The Hong Kong China Enterprises Index lost 0.8% to 8,894.73.
** China’s economy grew 4.9% in July-September from a year earlier, the weakest pace since the third quarter of 2020, hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks and raising heat on policymakers amid rising jitters over the property sector.
** Despite slowing growth, policymakers signalled they have other ways to support growth. Some analysts toned down their expectations for further broad monetary policy support.
** Real estate stocks fell more than 3% on signs of slowdown in the sector and even as the central bank said spillover effects from China Evergrande Group’s debt woes were controllable.
** A former government expert was quoted as saying in an official media outlet that China could expand pilot testing of a property tax to Zhejiang province. That came after President Xi Jinping on Friday called for progress on the tax that could help reduce wealth inequality.
** Consumer staples stocks dropped more than 3%, with liquor makers shedding 6.9%.
** Energy and coal stocks soared 4.4% and 5.8%, respectively.
** China’s coking coal and coke futures jumped to record highs as supply remains tight even though Beijing has ramped up efforts to boost output.
** Tech giants led the drop on the Hang Seng Index, with the tech sub-index down 1.2%.
** China will continue its scrutiny of the internet sector, China’s industry and information minister said in an interview published on Sunday.
** The financials sub-index and the property sub-index went down more than 0.6% each.
Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu
