China stocks extend fall as stimulus hopes dwindle

China Resources Beer Holdings

20/08/2020 05:55

* SSEC -1.1%, CSI300 -1.3%, HSI -2.1%, HSCE -2%
    * China keeps key lending benchmark steady for 4th straight
month
    * Fed stays cautious on economy, says unemployment
rebounding

    HONG KONG, AUG 20 (Reuters) - Stocks in China fell for a
second straight session on Thursday after the country kept a key
interest rate steady, compounding expectations that Beijing will
limit further stimulus. 
** At the midday break, the Shanghai Composite index  .SSEC  was
down 1.1% at 3,371.48 points. 
 
** China's blue-chip CSI300 index  .CSI300  was down 1.3%, with
its financial sector sub-index  .CSI300FS  lower by 1.4%, the
real estate index  .CSI000952  down 0.6% and the healthcare
sub-index  .CSI300HC  down almost 1%.
 
** Chinese H-shares listed in Hong Kong  .HSCE  fell 2% while
the Hang Seng Index  .HSI  was down 2.1% at 24,662.71. 
 
** The smaller Shenzhen index  .SZSC  and the start-up board
ChiNext Composite index  .CNT  both fell 1.1%, while Shanghai's
tech-focused STAR50 index  .STAR50  lost 1.5%​.
 
** China kept its benchmark lending rate for corporate and
household loans steady, as expected, for the fourth straight
month at its August fixing on Thursday.  urn:newsml:reuters.com:*:nAZN00OD9W

** The print came after premier Li Keqiang stressed last week
that China would not resort to a flood-like stimulus.
 urn:newsml:reuters.com:*:nB9N2F101R
    
** Chinese A-shares were dragged down by expectations that
interest rates will not go any lower, said Steven Leung, a Hong
Kong-based executive director at UOB Kay Hian.

** "The market is worried about there may not be more much
liquidity to come," he added.
    
** Several Federal Reserve policymakers sounded downbeat on the
U.S. economy, warning that more easing might be need as a
rebound in employment was already slowing.  urn:newsml:reuters.com:*:nL1N2FL1GD
    
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 1.7% while Japan's Nikkei index
 .N225  was down almost 1%.
 
** The yuan  CNY=CFXS  was 0.04% weaker at 6.9220 per U.S.
dollar at 0422 GMT. 
 
** So far this year, the Shanghai stock index is up 10.5%, while
the CSI300 is up 14.3%. Shanghai stocks have risen 1.9% this
month.
     

 (Reporting by Noah Sin; Editing by Aditya Soni)
 ((Noah.Sin@thomsonreuters.com; +852 5202 7991; Reuters
Messaging: noah.sin.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/noah_sin))