China stocks tumble to 5-month lows, tracking global peers
(Updates to market close)
SHANGHAI, Sept 28 (Reuters) - China main stock benchmark tumbled to five-month lows on Wednesday, as fears grew that rapid interest rate hikes would tip the global economy into recession.
** The blue-chip CSI 300 Index .CSI300 and the Shanghai Composite Index .SSEC both plunged 1.6% at close. The CSI 300 closed at the lowest level since April 26.
** The Hang Seng Index .HSI slumped 3.4%, languishing around 11-year lows, while the Hang Seng China Enterprises Index .HSCE ended lower 3.1%.
** World shares sank to two-year lows on Wednesday, hammered by spiralling borrowing costs that intensified fears of a global recession and sent investors into the arms of the safe-haven dollar.
** China's onshore yuan touched the weakest level against a rising dollar since the global financial crisis of 2008, while its offshore counterpart hit the lowest on record.
** Foreign investors sold more than 3.8 billion yuan ($530 million) of Chinese shares through the stock connect scheme on Wednesday, following two days of net buying.
** Non-ferrous metal stocks .CSI000811 tumbled 5.2%, new energy firms .CSI399808 plunged nearly 4%, and semiconductor companies .CSIH30184 retreated 2.8%.
** Investors are dialling back risk exposure ahead of China's Communist Party Congress in October and sticking money in the relative safety of mainland blue chips as they await signs Beijing is ready to address problems hanging over the economy.
** "Sentiment is driving the market, both in equities and currencies. There are not many people doing any bottom fishing. Since (the Hang Seng) is below the mid-March low, it's hard to say where we're heading for," said Steven Leung, executive director of institutional sales at brokerage UOB Kay Hian.
** Mainland developers listed in Hong Kong .HSMPI plunged more than 6%, with CIFI Holdings (Group) Co 0884.HK down 30%.
** CIFI Holdings has missed payment of certain non-standard debt under a Tianjin project company, according to a report by credit intelligence provider Reorg.
** Hong Kong-listed tech firms .HSTECH dropped 3.9%, with e-commerce giant Alibaba Group 9988.HK down 4.1%.
** The Hang Seng Finance Index .HSNF declined 3.6%. HSBC Holdings 0005.HK tumbled 5.8% to become the biggest drag on the Hang Seng benchmark .HSI .
Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.