07/06/2022 12:50am EDT
SHANGHAI(Reuters) - China and Hong Kong stocks dropped on Wednesday as the country continued to grapple with COVID-19 flare-ups, while energy shares tracked a sell-off in the global oil market.
** The blue-chip CSI300 Index lost 1.3% by the lunch break, while the Shanghai Composite Index also fell 1.3%. In Hong Kong, benchmark Hang Seng Index weakened 1.4%.
** China is fighting a COVID-19 resurgence on multiple fronts across the country including an emerging cluster in Shanghai, spurring mass testing drives and fresh restrictions.
** Shanghai, which lifted its two-month lockdown in early-June, is testing all residents in nine of its 16 districts from Tuesday to Thursday as well as those in parts of three other districts.
** "The flare-ups in places like Shanghai and Anhui contributed to the stock market weakness," said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
** However, he pointed that the market had expected possible increase in infections, so there're no signs of panic-selling.
** Zhang also predicted higher volatility ahead as the pace of China's economic recovery will likely slow.
** Energy shares tumbled more than 5% in both China and Hong Kong, after a slump in global oil prices amid fears of economic recession.
** Most sectors fell in both markets.
** China's property shares dropped 3.6%, while resources shares fell 2.9%.
** Tech shares were the only bright spot on the mainland, with the tech-focused 50 Index rising 1.3%, led by chipmakers. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)
Sumber : Reuters
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