SHANGHAI, Nov 21 (Reuters) –
China stocks fell on Monday as domestic COVID-19 outbreaks
dashed some investors’ hopes of an early easing in strict
pandemic curbs, but the surge in infections lifted some
healthcare shares.
** The blue-chip CSI 300 Index was down 1.3% by
the end of the morning session, and the Shanghai Composite Index
slipped 0.8%.
** Hong Kong’s Hang Seng Index lost 2.1%, while the
Hang Seng China Enterprises Index declined 2.2%.
** China is fighting numerous COVID-19 flare-ups, from
Zhengzhou in the central Henan province to Chongqing in the
southwest and on Sunday reported 26,824 new local cases, nearing
April’s peaks.
** The official People’s Daily on Monday published another
article reiterating the need to catch infections early but avoid
taking a “one-size-fits-all” approach, its eighth such piece in
the nine days since China adjusted policy.
** “Recent high-level rhetoric shows few signs of an
imminent departure from zero-COVID,” said Oxford Economics
analysts in a note.
** Shares in Consumer staples, tourism
, and real estate developers led the
declines, down between 2% and 3%.
** However, some stocks related to coronavirus testing and
treatment rose, with TY Pharmaceutical Group and
Andon Health Co jumping 10% by their daily limits.
** Separately, China kept its benchmark lending rates
unchanged for the third straight month.
** In the Hong Kong market, tech giants and
mainland property developers were down roughly 3% each.
** “Our base-case forecast scenario is for a gradual
reopening, a slow recovery in the property sector and a US
recession in 2023, which will affect the return in Chinese
stocks,” said Hao Hong, chief economist at GROW Investment
Group.
** Hong expects the Shanghai Composite to trade
between around 3,000 and 3,500 for the next twelve months, and
the Hang Seng Index could jump to as high as 23,000,
while the 15,000 level in late October should be a low point of
the current cycle.
(Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)
