SHANGHAI: China and Hong Kong stocks dropped on Thursday, dragged by the financial sector following weak earnings at some lenders, and a correction in stock prices of some major state banks.
China’s CSI Financials index lost 1.4%, with Xiamen Bank down 7.5% after the lender reported a 15% decline in half-year net profit on Wednesday.
In Hong Kong, Shares of Citic Bank and Bank of Communications were down 5.5% and 6.2%, respectively.
UBS on Wednesday cut its 2024 economic growth forecast for China to 4.6% from 4.9%, as it expects weaker property activity to have bigger than previously assumed drag on the overall economy.
Shares of electric vehicle makers Li Auto were down 10.2% after its second-quarter earnings missed expectations.
By the midday break, the Shanghai Composite index was down 0.45% at 2,824.62 points.
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China’s blue-chip CSI 300 index slipped 0.07% with the financial sub-index down 1.56%, although consumer staples real estate and
healthcare rose 1.62%, 0.56% and 1.32% respectively.
Chinese H-shares listed in Hong Kong fell 0.93% to 6,167.8, while the Hang Seng Index was down 0.65% at 17,576.83.
In contrast, the smaller Shenzhen index was up 1.06%, the start-up board ChiNext Composite index was higher by 0.8% and Shanghai’s tech-focused STAR50 index rose 1.33%?.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.39% while Japan’s Nikkei index edged 0.11% lower.
The yuan was quoted at 7.1145 per U.S. dollar, 0.2% firmer than the previous close of 7.129.
Source: Brecorder
