Nov 25, 2024 at 5:00 am GMT
SHANGHAI (Reuters)- China's blue-chip index dropped to a five-week low while Hong Kong shares sank to their lowest in two months on Monday, as U.S. crackdown, a looming trade war and elevated geopolitical tensions sapped an already fading investor confidence.
** The blue-chip CSI300 Index.CSI300fell 0.6% by lunch break, touching its lowest level since Oct. 18. The Shanghai Composite Index. SSEC slipped 0.4% to a three-week low.
** In Hong Kong, the benchmark Hang Seng Index.HSIlost 0.5%, shedding all gains posted since late-September when China's policy stimulus triggered a rally.
** "We expect a volatile year ahead for the Chinese equities market with a conflux of forces pulling and pushing the markets," said James Wang, head of China strategy, UBS Investment Bank Research.
** Near-term challenges include U.S. trade tariffs, uncertainty around U.S. policies against China, and retail inflows showing signs of plateauing, Wang said, expecting a 5% potential downside until the end of the first quarter next year.
** The Biden administration is set to unveil new exportrestrictionson China as soon as this week, and the new regulations could add up to 200 Chinese chip companies to a trade restriction list.
** The nomination as U.S. Treasury Secretary of fund manager Scott Bessent, who worked for billionaire investor George Soros and noted short-seller Jim Chanos, also stirs concerns of a possible financial war against China.
** China-listed tech stocks slumped on Monday. An index tracking integrated circuit makers.CSI932087fell 2.3%, while the tech-focused 50 Index.50lost 2%.
** Bucking the sombre mood, an index of green vehicle makers.CSI930997rose 1.5% on news that Brussels and Beijing were nearing a solution over tariffs on Chinese electric vehicle imports into the bloc.
** In Hong Kong, tech.HSTECHand property shares.HSMPIled the declines.
Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips
Sumber : Reuters
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