SHANGHAI: China stocks finished at seven-month lows on Friday, as sharp falls in technology and property shares outweighed gains in brokerages fuelled by consolidation bets.
The Shanghai Composite index closed down 0.81% at 2,765.81 points, while the blue-chip CSI300 index ended 0.81% lower at 3,231.35 points. Both recorded their lowest closing levels since Feb 5.
For the week, the SSEC lost 2.69%, while the CSI300 slumped 2.71%.
China’s former central bank governor Yi Gang said the country should focus on fighting deflationary pressure as the economy struggles to lift off despite a raft of policy support measures.
The central bank hinted at more easing on Thursday, but investors interpreted the signal as official recognition of economic weakness.
On the day, the consumer staples sector ended down 0.97%, the real estate index lost 1.45% and the healthcare sub-index dropped 1.76%. Bucking the trend, brokerages jumped after Guotai Junan Securities agreed to acquire rival Haitong Securities, fuelling expectations of further industry consolidations.
This includes potential deals between CICC and China Galaxy Securities, as well as Citic Securities and China Securities, Hua Chuang Securities said in a note.
CICC’s Shanghai-listed shares jumped as much as 8% before finishing up 2.19%. Galaxy Securities soared 10% to hit a two-month high before easing to finish up 4.93%.
The smaller Shenzhen index ended down 1.61% and the start-up board ChiNext Composite index was weaker by 1.703%.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.31%, while Japan’s Nikkei index closed down 0.72%.
The Hong Kong market was suspended from trading due to super typhoon Yagi.
Source: Brecorder
