China’s blue chip index drops amid Ukraine crisis and political uncertainty

  • CSI300 -0.3%, SEC +0.02%, HSI -0.48%
  • PBOC drains market liquidity
  • Investors expect further marginal easing in the real estate sector

SHANGHAI, Feb 18 (Reuters) – China’s blue chip index fell on Friday as makers of new energy vehicles led losses as investors were cautious amid ongoing tensions between Russia and Ukraine and uncertainties on monetary policies.

**At the lunch break, China’s blue-chip CSI300 index (.CSI300) was down 0.3%, with the New Energy Vehicles sub-index (.CSI399976) down 1.35% .

** “Sentiment awaits more concrete signs of inflection amid continued uncertainties both domestically and internationally,” Morgan Stanley analysts wrote in a recent note, as the situation between Russia and the Ukraine persists as macro and political cycle divergence continues between China and the United States. .

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** The People’s Bank of China drained 150 billion yuan net for the week via an open market operation, according to Reuters calculations.

** The Shanghai Composite Index (.SSEC) was up 0.02% at 3,468.56 points. Shenzhen’s smaller index (.SZSC) fell 0.18%, the startup’s ChiNext Composite Index (.CNT) fell 0.98% and Shanghai’s tech-focused STAR50 index (.STAR50) fell 0.6%.

** Hong Kong-listed China H-shares (.HSCE) fell 0.39% to 8,677.34, while the Hang Seng Index (.HSI) fell 0.48% to 24,674.91 .

** So far this week, the CSI300 has gained 0.3%, while the Hang Seng has lost 0.9%.

** Property developer stocks rose with the CSI Property Index (.CSI000952) up 1.85%, while the HSI Property Index (.HSNP) added 0.65%. Investors expect further marginal easing after a city in Shandong lowered the down payment rate for first-time home buyers to 20%.

** China’s top finance minister pledged to cut corporate tax rates more vigorously, strengthen targeted fiscal spending and tighten fiscal discipline this year as part of efforts to stabilize the macro economy before the 20th Communist Party Congress. Read more

** Within the region, the MSCI Asia ex-Japan equity index (.MIAPJ0000PUS) was 0.34% lower, while Japan’s Nikkei index (.N225) was down 0.31%.

** The yuan was quoted at 6.3349 per US dollar, 0.05% firmer than the previous close of 6.338.

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Shanghai News Room report; Editing by Shailesh Kuber

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