China blue-chips fall on weak sentiment; foreign outflows resume
The blue-chip CSI 300 index ended down 0.23 per cent.
SHANGHAI: Chinese blue-chip shares ended lower on Wednesday amid investor concerns over a slowing economy and Beijing's trade dispute with Washington while foreign investors sold shares, but bargain hunting lifted insurance firms and the benchmark Shanghai index.
The blue-chip CSI 300 index ended down 0.23 per cent, with its financial sector sub-index closing flat, the real estate index down 1.55 per cent, while the healthcare sub-index closed 0.89 per cent weaker.
However, the Shanghai Composite index rebounded from earlier losses to end 0.16 per cent firmer at 2,914.70.
Net sales by foreign investors of A-shares through the Stock Connect linking Hong Kong and the mainland topped 3 billion yuan ($433.95 million). Foreign investors made net purchases on Monday after an eight-session selling streak.
A sub-index tracking banking shares lost 0.85 per cent on the day amid ongoing uncertainty over the impact of a regulatory takeover of Baoshang Bank, a troubled regional lender. Chinese money rates rose following the takeover, but have since retreated. China's central bank made its largest daily net cash injection into the banking system in more than four months on Wednesday.
Underscoring the risk to market expectations of implicit guarantees, sources told Reuters that haircuts of as much as 30 per cent are possible in the repayment of Baoshang's larger debts.
However, shares of China's major insurance firms jumped as investors hunted for bargains in a sector whose valuations, analysts say, are attractively low. People's Insurance Group of China (PICC) surged 8.85 per cent and China Life Insurance Co Ltd added 4.82 per cent.
Shares of China's rare earth-related firms also climbed after reports that Beijing is mulling restricting exports to the United States. JL MAG Rare-Earth Co Ltd, which was visited by Chinese President Xi Jinping last week, rose by the daily 10 per cent limit to a record high.
Major Chinese newspapers warned the United States on Wednesday that China is ready to use rare earths to strike back in their bitter trade war, with the ruling Communist Party's People's Daily newspaper saying in an extremely strongly worded commentary, "don't say we didn't warn you".
The smaller Shenzhen index ended unchanged for the day and the start-up board ChiNext Composite index was weaker by 0.483 per cent.
Around the region, MSCI's Asia ex-Japan stock index dropped 0.66 per cent, while Japan's Nikkei index closed down 1.21 per cent.
At 0723 GMT, the yuan was quoted at 6.9143 per U.S. dollar, 0.09 per cent weaker than the previous close of 6.908.
The largest percentage gainers in the main Shanghai Composite index were Danhua Chemical Technology Co Ltd, up 10.11 per cent, followed by Nanjing Tanker Corp, gaining 10.1 per cent and First Tractor Co Ltd, up by 10.08 per cent.
The largest percentage losses in the Shanghai index were HNA Infrastructure Investment Group Co Ltd down 7.38 per cent, followed by Qingdao Topscomm Communication Inc losing 6.27 per cent and Aurora Optoelectronics Co Ltd down by 5.23 per cent.
So far this year, the Shanghai stock index is up 16.9 per cent and the CSI 300 climbed 21.7 per cent, while China's H-share index listed in Hong Kong is up 2.8 per cent. Shanghai stocks dropped 5.32 per cent so far this month.
The blue-chip CSI 300 index ended down 0.23 per cent, with its financial sector sub-index closing flat, the real estate index down 1.55 per cent, while the healthcare sub-index closed 0.89 per cent weaker.
However, the Shanghai Composite index rebounded from earlier losses to end 0.16 per cent firmer at 2,914.70.
Net sales by foreign investors of A-shares through the Stock Connect linking Hong Kong and the mainland topped 3 billion yuan ($433.95 million). Foreign investors made net purchases on Monday after an eight-session selling streak.
A sub-index tracking banking shares lost 0.85 per cent on the day amid ongoing uncertainty over the impact of a regulatory takeover of Baoshang Bank, a troubled regional lender. Chinese money rates rose following the takeover, but have since retreated. China's central bank made its largest daily net cash injection into the banking system in more than four months on Wednesday.
Underscoring the risk to market expectations of implicit guarantees, sources told Reuters that haircuts of as much as 30 per cent are possible in the repayment of Baoshang's larger debts.
However, shares of China's major insurance firms jumped as investors hunted for bargains in a sector whose valuations, analysts say, are attractively low. People's Insurance Group of China (PICC) surged 8.85 per cent and China Life Insurance Co Ltd added 4.82 per cent.
Shares of China's rare earth-related firms also climbed after reports that Beijing is mulling restricting exports to the United States. JL MAG Rare-Earth Co Ltd, which was visited by Chinese President Xi Jinping last week, rose by the daily 10 per cent limit to a record high.
Major Chinese newspapers warned the United States on Wednesday that China is ready to use rare earths to strike back in their bitter trade war, with the ruling Communist Party's People's Daily newspaper saying in an extremely strongly worded commentary, "don't say we didn't warn you".
The smaller Shenzhen index ended unchanged for the day and the start-up board ChiNext Composite index was weaker by 0.483 per cent.
Around the region, MSCI's Asia ex-Japan stock index dropped 0.66 per cent, while Japan's Nikkei index closed down 1.21 per cent.
At 0723 GMT, the yuan was quoted at 6.9143 per U.S. dollar, 0.09 per cent weaker than the previous close of 6.908.
The largest percentage gainers in the main Shanghai Composite index were Danhua Chemical Technology Co Ltd, up 10.11 per cent, followed by Nanjing Tanker Corp, gaining 10.1 per cent and First Tractor Co Ltd, up by 10.08 per cent.
The largest percentage losses in the Shanghai index were HNA Infrastructure Investment Group Co Ltd down 7.38 per cent, followed by Qingdao Topscomm Communication Inc losing 6.27 per cent and Aurora Optoelectronics Co Ltd down by 5.23 per cent.
So far this year, the Shanghai stock index is up 16.9 per cent and the CSI 300 climbed 21.7 per cent, while China's H-share index listed in Hong Kong is up 2.8 per cent. Shanghai stocks dropped 5.32 per cent so far this month.