China, HK shares drop as investors take stock of global shutdowns

China Resources Gas

30/03/2020 06:18

* SSEC -1.6%, CSI300 -1.8%, HSI -1.3%
    * HK->Shanghai Connect daily quota used -0.5%, Shanghai->HK
daily
quota used 3.2%
    * FTSE China A50 -1.5%

    SHANGHAI, March 30(Reuters) - China and Hong Kong stocks
fell on Monday as investor concerns over coronavirus-driven
global shutdowns overshadowed an unexpected rate cut by the
country's central bank. 
    ** At the midday break, the Shanghai Composite index  .SSEC 
was down 1.59% at 2,728.07 points. 
    ** China's blue-chip CSI300 index  .CSI300  was down 1.8%,
with its financial sector sub-index  .CSI300FS  dropped 1.4%,
the consumer staples sector  .CSI000912  down 1.11%, the
real-estate index  .CSI000952  down 1.55% and the healthcare
sub-index  .CSI300HC  slipped 1.94%.
    ** The Hang Seng index  .HSI  dropped 1.3% to 23,181.07
points, while the Hong Kong China Enterprises Index  .HSCE  lost
0.9% to 9,419.72.   
    ** The current concern is if external demand deteriorates
due to the coronavirus contagion, China will be inevitably
impacted as it's a key part of global industry chains, Bohai
Securities wrote in report.  
    ** The upside room for the A-share market is relatively
narrow, the brokerage added. 
    ** A rising tide of national lockdowns threatened to
overwhelm policymakers' frantic efforts to cushion what is
likely to be a deep global recession. 
    ** The ruling Communist Party's Politburo said the
government will step up policy measures and tighten enforcement
in a bid to achieve full-year economic and social development
targets.  urn:newsml:reuters.com:*:nB9N2BC00E
    ** China's central bank unexpectedly cut the rate on reverse
repurchase agreements by 20 basis points on Monday, the largest
in nearly five years, as authorities stepped up measures to
relieve pressure on an economy ravaged by the coronavirus
pandemic.  urn:newsml:reuters.com:*:nL4N2BN0QC 
    ** In a note to clients, Capital Economics said "a lot more
easing will be needed, especially on the fiscal front, to help
the economy return to its pre-virus trend."
    ** Mainland China reported a drop in new coronavirus
infections for a fourth day as imported cases dropped, while
authorities shut the borders to foreign travellers and
drastically slashed the number of international flights.
 urn:newsml:reuters.com:*:nL4N2BN06H 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.88%, while Japan's Nikkei index
 .N225  was down 2.78%.
    ** The yuan  CNY=CFXS  was quoted at 7.0961 per U.S. dollar,
0.01% firmer than the previous close of 7.097. 
    ** As of 0412 GMT, China's A-shares were trading at a
premium of 27.36% over the Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu and Andrew Galbraith, Editing by
Sherry Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))