China, HK stocks slide as chip, consumption sectors drag markets

Sunny Optical Technology Co

08/01/2025 05:03

HONG KONG, Jan 8(Reuters) - China and Hong Kong stocks
fell on Wednesday, led by declines in the chip and consumption
sectors, as geopolitical tensions and economic uncertainties
kept sentiment subdued.
** At the midday break, China's blue-chip CSI300 index  .CSI300 
was down 1.5%, and the Shanghai Composite index  .SSEC  weakened
1.46% to 3,182.48 points. 
 
** In Hong Kong, the benchmark Hang Seng Index dropped 1.6%,
extending its decline to a third consecutive day and reaching
its lowest point since late September. 
** Leading the decline onshore, shares of semiconductor firms
 .CSI931865  tumbled 3.3%, giving up most of the gains made on
Tuesday after the U.S. Defense Department expanded the list of
firms allegedly aiding Beijing's military. 
 
** Shares of chipmaker Semiconductor Manufacturing International
Corporation  688981.SS  shed 4.7% to a nearly three-week low and
peer Hua Hong Semiconductor  688347.SS  lost 4.3%.
 
** China's consumption sector  .CSICS  fell 1.3% despite
Beijing's latest measures to expand scope of consumer trade-ins.
 
 ** "A combination of an escalation in U.S.-China tensions,
looming tariff uncertainty stemming from the incoming U.S.
administration, and likely muted policy actions from China ahead
of the March NPC suggests that Chinese equities will likely go
through a volatile period until policy delivery materializes,"
analysts at Goldman Sachs said in a note on Wednesday. 
 
 ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.60% while Japan's Nikkei index
 .N225  was down 0.13%.
 ** Chinese ADRs  .HXC  fell 0.2% overnight.
 ** The yuan  CNY=CFXS  was quoted at 7.3316 per U.S. dollar,
0.04% weaker than the previous close of 7.3284. 
 
 

 (Reporting by Jiaxing Li; Editing by Sherry Jacob-Phillips)
 ((jiaxing.li@thomsonreuters.com))