China's shares drop over 1% on inflation worries, new COVID cases

Xinyi Solar Holdings

09/03/2022 05:22

* SSEC -1.1%, CSI300 -1.3%, HSI -2.2%
    * Hikes in global commodity prices deepen inflation worries
    * Mainland reports 337 new confirmed coronavirus cases 

    SHANGHAI, March 9 (Reuters) - China's shares extended losses
on Wednesday, as market watchers remain on edge amid fears of a
wider impact of commodity prices' surge on Beijing, while new
coronavirus cases in the world's second-largest economy also
weighed on risk sentiment. 
 
** At the midday break, China's blue-chip CSI300 index  .CSI300 
was down 1.27% at 4211.27, the lowest since July 1, 2020. The
Shanghai Composite index  .SSEC  fell 1.07% to 3,258.17 points.
 
** The Hang Seng Index  .HSI  slumped 2.19% to 20,311.23. The
sub-index of the Hang Seng index, which tracks energy shares
 .HSCIE , dipped 0.9% while the IT sector  .HSCIIT  fell 2.7%. 
    
** Sentiment in the A-share market would continue to be weak as
geopolitical tensions remain unsolved while commodity prices are
hiking all the time, analysts said.        

** The real-estate index  .CSI000952  slumped 3.83% and the
healthcare sub-index  .CSI300HC  fell 2.84%.    

** China's factory inflation in February eased to the slowest
annual pace in eight months due to seasonal effects from the
Lunar New Year holiday, but analysts expect it to rise in the
coming months because of surging global commodity prices.
 urn:newsml:reuters.com:*:nL2N2VC04U
                
** Shares of companies exposed to Tsingshan Holding Group, the
Chinese nickel producer squeezed by the surge in the metal's
prices, tumbled with Zhejiang Huayou Cobalt  603799.SS  slumping
nearly 10%.  urn:newsml:reuters.com:*:nL2N2VC050 
    
** Tsingshan bought large amounts of nickel to reduce its short
bets on the metal and its exposure to costly margin calls,
turbocharging a record rally fuelled by the conflict in Ukraine,
three sources familiar with the matter said.  urn:newsml:reuters.com:*:nL2N2VB0NU
        
** Chinese companies that defy U.S. restrictions against
exporting to Russia may be cut off from American equipment and
software they need to make their products, U.S. Commerce
Secretary Gina Raimondo told the New York Times.  urn:newsml:reuters.com:*:nL2N2VB33L 
    
** Mainland China reported 337 new confirmed coronavirus cases
on March 8, the country's national health authority said on
Wednesday, compared with 325 a day earlier.  urn:newsml:reuters.com:*:nB9N2V600C
    
** China's central bank said on Tuesday it will pay more than 1
trillion yuan ($158.30 billion) in profit to the central
government this year.  urn:newsml:reuters.com:*:nL2N2VB0R1
        
** The smaller Shenzhen index  .SZSC  was down 1.76%, the
start-up board ChiNext Composite index  .CNT  was weaker by
1.61% and Shanghai's tech-focused STAR50 index  .STAR50  dropped
0.72%​.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.11%, while Japan's Nikkei index
 .N225  climbed 0.58%.
 
** The yuan  CNY=CFXS  was quoted at 6.3172 per U.S. dollar,
0.04% firmer than the previous close of 6.3195. 
    
    ($1 = 6.3171 Chinese yuan)

    

 (Reporting by Shanghai Newsroom; Editing by Sherry
Jacob-Phillips)