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China stocks fall as U.S. inflation fuels more aggressive rate-hike bets

China stocks fall as U.S. inflation fuels more aggressive rate-hike bets

Reuters · 09/14/2022 00:54
China stocks fall as U.S. inflation fuels more aggressive rate-hike bets

- China stocks on Wednesday tracked a slump in global markets, after hotter-than-expected U.S. inflation data fuelled bets for more aggressive rate hikes by the Federal Reserve.


** The blue-chip CSI 300 Index .CSI300 lost 1.2% by the end of the morning session, while the Shanghai Composite Index .SSEC was down 1%.

** The Hang Seng Index .HSI tumbled 2.6%, and the Hang Seng China Enterprises Index .HSCE dropped 2.5%.

** Other Asian shares tumbled after Wall Street saw its steepest fall in two years, as U.S. CPI data for August dashed hopes for a peak in inflation.

** U.S. Labor Department data showed the headline Consumer Price Index gained 0.1% on a monthly basis versus expectations for a 0.1% decline.

** "The overnight plunge in the U.S. market dented sentiment in China's A-shares," said Wang Mengying, a stock index futures analyst at Nanhua Futures, adding that investors will continue to focus on domestic COVID-19 outbreaks and anti-virus measures, and the implementation of pro-growth policies.

** New energy shares .CSI399808 slumped 2.2%, automobiles .CSI931008 went down 2%, while shares in healthcare .CSIHCSI and consumer discretionary .CSIASCDI lost 1.2% and 1.6%, respectively.

** Bucking the trend, real estate developers .CSI000952 added 0.8%.

** Tech firms listed in Hong Kong .HSETCH tumbled 3%, with e-commerce giant Alibaba Group 9988.HK down 4.4% to become the biggest drag on the Hang Seng benchmark.

** Financials shares .HSCIF declined 2.2%, with index heavyweights HSBC Holdings 0005.HK and AIA Group 1299.HK down 2.7% each.

** China International Capital Corp (CICC) 3908.HK, 601995.SS slumped roughly 9% in both mainland and Hong Kong markets, after the top broker proposed a rights issue to support business development and boost capital.

** Investors' focus will shift to the central bank's medium-term policy loan operation on Thursday, with traders and analysts widely expecting a pause in monetary easing effort, amid widening policy divergence between China and the U.S.


(Reporting by Shanghai Newsroom)

((Jason.Xue@thomsonreuters.com))