China stocks close lower on hit from recent Covid-19 outbreaks

SHANGHAI: China stocks closed lower on Monday as recent COVID-19 outbreaks in the country weighed on consumption, tourism and the broader services sector.

The blue-chip CSI300 index fell 0.4 per cent to 4,890.69, while the Shanghai Composite Index lost 0.1 per cent to 3,544.48.

Shares in consumer staples, tourism and transport dropped between 0.8 per cent and 2.9 per cent.

Activity in China’s services sector grew at a slower pace in October as the country combats small-scale COVID-19 outbreaks hitting mainly the north.

“The non-manufacturing PMI could drop much further in November, as Beijing may significantly tighten travel restrictions in coming weeks, in order to contain the current wave ahead of the upcoming Spring Festival travel rush,” Nomura analysts said.

Separately, China’s factory activity contracted more than expected in October, hurt by persistently high raw material prices and softer domestic demand.

Real estate firms declined for a sixth session and finished down 1.6 per cent, as a recent planned pilot real-estate tax scheme dented risk appetite in the sector.

Although banks have been requested by Beijing to avoid overly severe property curbs, Nomura said “it’s still fine-tuning, not outright easing” and the brokerage expected “the environment may continue to decline for the property sector”.

A sub-index tracking defence stocks gained 1.8 per cent as tensions around Taiwan issues intensified.

U.S. Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi locked horns over Taiwan on the sidelines of a Group of 20 summit on Sunday, trading warnings against moves that could further escalate tensions across the Taiwan Strait.

Banks added 1.1 per cent after China’s top banks saw third-quarter profits jump more than 10 per cent as bad loans held steady.

The information technology sub-index finished up 2 per cent.

China stocks end 1% lower as coal miners slump

SHANGHAI: China shares closed lower on Wednesday, led by coal miners following Beijing’s latest move to address skyrocketing prices, while environmental protection-related companies advanced on the country’s plans to hit a carbon emission peak before 2030.

The blue-chip CSI300 index ended down 1.3 per cent to 4,898.16, while the Shanghai Composite Index lost 1 per cent to 3,562.31 points.

The coal sub-index and the energy sub-index slumped 4.2 per cent and 3.2 per cent, respectively.

China said it will conduct “clean up and rectification” work on coal storage sites in some coal-producing areas and ban storage sites without approvals in its latest move to address skyrocketing coal prices.

Consumer staples, healthcare shares and semiconductors lost between 1.2 per cent and 1.8 per cent.

The environmental protection industry index, the new energy index, and the new energy vehicles index went up more than 2 per cent each.

China’s cabinet said the country will take action to reduce waste, promote renewables and unconventional fuel, and reform its electricity network as part of its plan to bring carbon emissions to a peak before 2030.

China Merchants Securities said in a note that fossil fuels used in power generating are still a main source of carbon emission, while using new energy is the fundamental to achieve carbon neutrality, which is also a theme of development in the coming decades.

Separately, data shows profit at China’s industrial firms rose at a faster pace in September despite surging prices and supply bottlenecks.