Hong Kong stocks fall as weak lending data fans economic slowdown concerns

ZhongAn Online P & C Insurance

12/08/2021 09:40

Aug 12 (Reuters) - Hong Kong shares dropped on Thursday as
weaker-than-expected lending data deepened China economic
slowdown concerns and weighed on sentiment.

    **The Hang Seng index  .HSI  fell 0.5%, to 26,517.82, while
the China Enterprises Index  .HSCE  lost 0.9%, to 9,465.46
points.   
    
    ** China's new bank loans fell to 1.08 trillion yuan ($166.5
billion) in July, its lowest in nine months.
    
    ** Growth of outstanding total social financing (TSF), a
broad measure of credit and liquidity in the economy, slowed to
10.7% in July - the weakest reading since February 2020 - from a
year earlier and from 11% in June.  urn:newsml:reuters.com:*:nL1N2PI0SM
    
    ** "We expect the slowdown and resulting headwind to the
economy to continue in the coming months, further RRR and policy
rate cuts notwithstanding," Capital Economics said in a note.
    
    ** Healthcare sector led the decline, with the sub-index
 .HSCIH  finishing down 3%.  
    
    ** CanSino Biologics Inc  6185.HK  Tumbled 7.6%, Sino
Biopharmaceutical Ltd  1177.HK   lost 2.8%, Wuxi Biologics
(Cayman) Inc  2269.HK  declined 2.8%.
    
    ** The plunge of vaccine makers in U.S. market yesterday
curbed risk appetite, after EU said it was looking into new
possible side-effects of mRNA COVID-19 shots.  urn:newsml:reuters.com:*:nL4N2PI3BS
    
    ** The financials sub-index  .HSCIF  dropped 1.3%, dragged
lower by insurance companies, as China's banking and insurance
regulator said yesterday it would step up its scrutiny of online
insurance companies.  urn:newsml:reuters.com:*:nL4N2PJ14V
    
    ** Chinese online insurer ZhongAn  6060.HK  plunged 11.5%,
Ping An Insurance Group  2318.HK  dropped 2.6%, China Life
Insurance Co Ltd  2628.HK  went down 1%.
    
    ** Educational companies fell, as China said yesterday it
would draft new laws on national security, technology
innovation, monopolies and education.  urn:newsml:reuters.com:*:nL1N2PJ08V
    
    ** Private educational firm New Oriental Education &
Technology Group  9901.HK  slipped 4.1%. Its shares have slumped
around 90% since this year. China East Education Holdings Ltd
 0667.HK  lost 2.8%.
    
    ** Index heavyweight Alibaba  9988.HK  lost 1.3%, dragging
the index down 35 points.
    
    ** Heavily-indebted developer China Evergrande Group 3333.HK
plunged more than 8% after a strong rebound earlier this week
that came on the back of asset sale plans.

 (Reporting by the Shanghai Newsroom)
 ((Jason.Xue@thomsonreuters.com))