Published 09:56 IST, February 26th 2024
Chinese, Hong Kong stocks decline after nine-day winning streak
China's blue-chip CSI300 Index was down 0.7%, while the Shanghai Composite Index lost 0.6%.
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Chinese stocks fall: Chinese stocks witnessed a downturn on Monday, breaking a nine-session winning streak, as investors expressed concerns about the sustainability of the recent market rally.
During the lunch break, China's blue-chip CSI300 Index was down 0.7 per cent, while the Shanghai Composite Index lost 0.6 per cent.
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Similarly, the Hang Seng Index in Hong Kong fell by 0.7 per cent.
Despite the CSI300 Index rebounding approximately 12 per cent from its five-year low earlier this month, investors are questioning the durability of this upward trend.
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Alvin Tan, head of Asia FX strategy at RBC Capital Markets, noted that the recent market recovery has been fueled by state-led intervention and regulatory measures, leaving uncertainty regarding its longevity.
On Friday, China's President Xi Jinping convened a meeting of the Central Financial and Economic Affairs Commission to explore strategies for supporting manufacturers and reducing logistics costs, according to state media reports.
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Although sectors like consumer discretionary and auto shares experienced gains on Monday, Chinese investors continued to pour funds into Japan- and US-focused stocks amid the ongoing rallies in the Nikkei and Nasdaq indices.
However, fund managers have issued warnings about potential market risks associated with this trend.
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ICBC Credit Suisse Asset Management highlighted risks for investors in its exchange-traded fund (ETF) tracking the Nikkei 225, as the trading price exceeded the fund's net asset value.
In Hong Kong, shares of pharmaceutical research outsourcing companies WuXi AppTec Co. and Wuxi Biologics saw gains of 3.6 per cent, while sports brands Anta and Lining saw declines of approximately 3 per cent each.
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(With Reuters Inputs)
09:56 IST, February 26th 2024