Chinese stocks continue their five-week slide

Shanghai — Chinese stocks extended their drop on Monday after five weekly losses, as risk sentiment remained weak. Recent data showed a sluggish economic recovery, and policy signals from a top meeting failed to excite investors.

The blue-chip CSI 300 index lost 0.2% and the Shanghai composite index slipped 0.1% by the midday recess. Hong Kong’s Hang Seng index declined nearly 1% and the Hang Seng China enterprises index fell 1.1%.

Broadly, Asian stocks also slipped in a subdued start to a week in which Japan’s central bank might edge further away from its uber-easy policies, while a key reading on US inflation is expected to underpin market pricing of interest rate cuts there.

The tone of China’s highly anticipated annual central economic work conference last week remained pro-growth but “there was not much detail on specific easing measures, especially in the property market”, Goldman Sachs said in a note.

Recent economic numbers have been mixed, but the macro picture of a weak property market and reluctant policy easing remains unchanged, Goldman Sachs said.

Most sectors fell in mainland markets, with shares in semiconductors, new energy, media and tourism down between 1.4% and 1.9% to lead the decline. Shares of Shanghai Guijiu, a spirit maker that is connected to struggling wealth manager Hywin, dropped 10% — the daily lower limit — to touch its lowest level since April 2021.

In Hong Kong, stocks in tech giants retreated 1.2%, and mainland developers declined 1.9%. Shares of artificial intelligence (AI) software developer SenseTime Group dropped 11.9% after the firm’s founder, Tang Xiaoou, died late on Friday.

Reuters