China shares fall as high valuations drain out power from EV stocks

Xinyi Glass Holdings

02/03/2022 04:54

* SSEC -0.4%, CSI300 -1.1%, HSI -1.1%
    * Energy firms gain as oil prices rise above $110
    * Biden bans Russian flights using American airspace 

    SHANGHAI, March 2 (Reuters) - China shares fell on Wednesday
with new-energy vehicle makers leading losses as investors
dumped equities with high valuations amid worries over the
impact of aggressive sanctions imposed against Russia. 
 
** At the midday break, the Shanghai Composite index  .SSEC  was
down 0.41% at 3,474.45 points and China's blue-chip CSI300 index
 .CSI300  fell 1.05%. 
    
** Leading the losses, the new-energy vehicle sector
sub-index .CSI399976  lost 2.11% and the CSI300 Industry
 .CSI000910  fell 1.73%.
    
** The start-up board ChiNext Composite index  .CNT  slumped 2%,
dragged lower by battery manufacturing heavyweight CATL
 300750.SZ , which lost 4.27%.
    
** The smaller Shenzhen index  .SZSC  was down 0.84% and
Shanghai's tech-focused STAR50 index  .STAR50  slumped 1.09%​. 
    
** Chinese H-shares listed in Hong Kong  .HSCE  fell 0.87% to
7,983.35 and the Hang Seng Index  .HSI  was down 1.07% at
22,518.18.     
    
** Oil refiners bucked the sombre mood with the CSI Energy
 .CSIEN  gaining 1.3% after oil prices surged past $110 per
barrel. The sub-index of the Hang Seng Index, which tracks
energy shares  .HSCIE , rose 2.4%.
    
** U.S. President Joe Biden banned Russian flights using
American airspace during his State of the Union speech on
Tuesday, in which he also said Russian President Vladimir Putin
would "pay a continuing high price over the long run" for the
invasion of Ukraine.  urn:newsml:reuters.com:*:nL1N2V417E                
     
** Hong Kong-listed shares of Russian aluminium producer OK
Rusal  0486.HK  plunged nearly 30% on Wednesday, hitting the
lowest since November 2020 after miner and trader Glencore
 GLEN.L  said it is reviewing all its business activities in
Russia, including equity stakes in aluminium.  urn:newsml:reuters.com:*:nL4N2V50WR
    
** Property shares and financial firms led losses in Hong Kong
with the financial sector sub-index  .HSNF  falling 2.04% while
the property sector  .HSNP  lost 1.21%.                
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.52% while Japan's Nikkei index
 .N225  was down 1.83%.
 
** The yuan  CNY=CFXS  was quoted at 6.3127 per U.S. dollar,
0.02% weaker than the previous close of 6.3113. 
    

 (Reporting by Shanghai Newsroom; Editing by Sherry
Jacob-Phillips)
 ((zoey.zhang@thomsonreuters.com))