China stocks fall as geopolitical risks weigh
Wednesday, May 24, 2023       13:44 WIB

Today at 01:13 am
SHANGHAI (Reuters) - Chinese stocks fell on Wednesday as geopolitical risks continue to weigh on investor sentiment. Hong Kong shares also declined, tracking other Asian stocks extending a global sell-off as U.S. debt ceiling negotiations dragged on without resolution.
** China's blue-chip CSI300 Index and the Shanghai Composite Index both dropped 0.5% by midday recess.
** Hong Kong's benchmark Hang Seng Index was down 0.9%, while the China Enterprises Index fell 1.1%.
** Geopolitical risks continue to weigh on investor sentiment. Russia and China are set to sign a set of bilateral agreements on Wednesday during the Russian prime minister's trip to Beijing as the two neighbours pledge closer cooperation, even as the West remains critical of their ties amid the war in Ukraine.
** Meanwhile, China's new ambassador to Washington, Xie Feng, said that he will seek to enhance China-U.S. cooperation.
** Sectoral performances in China were mixed.
** New energy and semiconductor shares gained 0.9% and 1.5%, respectively, while Chinese banks continued their downward journey as the state-owned enterprises' (SOEs) revaluation theme is losing momentum. Most banks in China are SOEs.
** Tech giants trading in Hong Kong slipped 1.1%, with Alibaba Group Holding Ltd down 1.6%. The e-commerce giant's cloud unit has started a round of downsizing that will impact 7% of staff as it streamlines its business in preparation for an IPO.
** Despite the overall subdued sentiment, UBS analysts have seen improving earnings trends as over 80% of MSCI China companies reported their first-quarter results with overall net profit up 7% year-over-year.
** "The internet sector saw the strongest earnings performance in the first quarter due to cost control," the analysts said. (Reporting by Shanghai Newsroom; Editing by Sonia Cheema)

Sumber : Reuters