China stocks end lower as Beijing COVID concerns weigh

Orient Overseas (International)

23/05/2022 09:44

(Updates with Hong Kong closing levels)
    SHANGHAI, May 23 (Reuters) - China stocks closed down on
Monday as Beijing reported 99 new COVID-19 cases - the highest
daily tally in the capital during the current outbreak - while
profit-taking after two straight weeks of gains also weighed on
benchmarks.
    
    The blue-chip CSI300 index  .CSI300  fell 0.6%, to 4,053.98,
while the Shanghai Composite Index  .SSEC  was almost flat at
3,146.86 points.   
    The Hang Seng index  .HSI  fell 1.2%, to 20,470.06, while
the China Enterprises Index  .HSCE  lost 1.4%, to 7,022.45
points.   
    ** "There is some resistance after the Shanghai Composite
benchmark rebounded more than 200 points from a recent trough,"
said Zhang Yanbing, an analyst with Zheshang Securities.
    ** "There are still some challenges in the market, and more
positive fundamental catalysts are needed for further gains,"
CICC said in a note.
    ** Investors should closely monitor fundamentals as China's
COVID situation improves, including the real estate sector and
consumer demand, CICC said. 
    ** Real estate developers  .CSI000952  slumped 3.8% to lead
the decline, tourism firms  .CSI930633  and liquor makers
 .CSI399997  both lost more than 1.5%, while non-ferrous metal
 .CSI000811  and automobiles  .CSI931008  both climbed more than
2%.
    ** Chinese regulators said on Friday they will streamline
the process of equity and bond issuance by companies hit by the
pandemic, and urged brokerages and fund managers to channel more
money into virus-hit areas and sectors.  urn:newsml:reuters.com:*:nL2N2XC13H
    ** Chinese healthcare firms with monkeypox-related business
jumped, as the World Health Organization says it expects to
identify more cases of the disease, even though China has not
reported any monkeypox cases.  urn:newsml:reuters.com:*:nL2N2XF09Y
    ** Broader Asian stocks also came under pressure as
investors worried inflation and rising interest rates would
darken the outlook for the global economy.  urn:newsml:reuters.com:*:nL2N2XF07Z
    ** Geopolitics-wise, China’s foreign ministry said the U.S.
should not defend Taiwan independence, after U.S. President Joe
Biden said Washington would defend Taiwan militarily if Beijing
invaded the self-governed island. 
    ** Tech firms listed in Hong Kong  .HSTECH  lost 2.5%, with
e-commerce giant Alibaba  9988.HK  and food-delivery giant
Meituan  3690.HK  both slipping more than 3%.
    ** Shares of Orient Overseas  0316.HK  and China Hongqiao
Group  1378.HK  jumped more than 6% each as they will be added
to the Hang Seng benchmark.  urn:newsml:reuters.com:*:nL2N2XF03A
    

 (Reporting by Shanghai Newsroom; Editing by Simon Cameron-Moore
and Louise Heavens)
 ((Jason.Xue@thomsonreuters.com))