COVID constraints continue to hurt blue-chip Chinese stocks

Blue-chip Chinese stocks tumbled on Monday as market concerns over the economic impact of COVID-19 lockdowns grew, with new trade data pointing to lackluster demand. ** China’s blue-chip CSI300 index was down 0.65% at 3,883.51 points as of midday, while the Shanghai Composite index was unchanged at 3,001.62 points. The financial sector sub-index of the CSI300 lost 0.53%, while the consumer staples sector fell 1.7%. ** Worries over the spreading impact of COVID-19 restrictions were among the biggest losers on Monday, with the sub-index following the sector down 2.61%. Kweichow Moutai Co Ltd, the index heavyweight, fell 2.36%, the most on the CSI300. Chinese automakers tumbled as an industry organization estimated April sales were down 48% year on year and COVID-19 nil.

The CSI Automobiles index fell 1.36%. New customs data released on Monday showed coal imports fell in the January-April period as COVID-19 control measures dampened demand. China’s biggest city is tightening its lockdown in a fresh push to clear infections outside quarantine zones by the end of the month, people familiar with the matter told Reuters. Hong Kong markets are closed on Monday for a public holiday. Shenzhen’s smaller index rose 0.41%, the start-up board’s ChiNext Composite index was 0.35% lower and Shanghai’s technology-focused STAR50 index rose 0, 52%. In the region, the MSCI Asia ex-Japan equity index was down 1.22%, while Japan’s Nikkei index was down 2.09%. By noon in China, the yuan was quoted at 6.7073 to the US dollar, after hitting a fresh 18-month low earlier in the session. So far this year, the Shanghai Stock Index is down 17.5% and the CSI300 has fallen 21.4%. Shanghai shares are down 1.49% this month.

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  • COVID constraints continue to hurt blue-chip Chinese stocks
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