Chinese stocks halt 3-day streak of rise as housing market slowdown weighs in
SHANGHAI, Aug.26 (Reuters) – Chinese stocks ended a three-day winning streak to end lower on Thursday, as tech stocks retreated after a sharp rebound, as a government-induced slowdown The country’s real estate market has deepened concerns about economic health.
** Investors have also looked to the Jackson Hole Symposium for reassurance that the Federal Reserve will not rush to tighten policy, a move that could trigger capital outflows from emerging markets.
** The blue-chip CSI300 index closed down 2% to 4,801.61 points, while the Shanghai Composite Index lost 1.2% to 3,501.66 points.
** China’s tech-rich STAR 50 index has fallen nearly 3% to its lowest closing level in two months. The board of directors of Shenzhen start-up ChiNext lost 2%.
** China cracked down on tutoring, brought monopoly tech giants to their knees, and stepped up restrictions on home buying.
** “Gaming regulations and tighter control of content delivery are on their way, and the word ‘Common Prosperity’ is increasingly used in government speeches indicating higher taxes and greater redistribution.” , wrote Peter Garnry, Head of Equity Strategy at SAXO. Bank.
** “The next Chinese Party Congress is scheduled for October 2022, and so the political sphere may continue to cast a shadow over the Chinese stock market,” Garnry said.
** Chinese real estate stocks fell nearly 2% as fears grew that draconian government restrictions could hurt developers’ profitability.
** China Evergrande Group, China’s most indebted real estate developer, forecasts a 39% drop in first-half profit, citing lower selling prices and higher expenses.
** China’s home price growth is expected to slow more than expected this year, as more cities put in place restrictions to stabilize their real estate markets and banks maintain tight credit quotas for developers, according to a Reuters poll.
** Chinese bank stocks fell sharply, amid fears that the asset quality of lenders may be suffering from a slowdown in the housing market and a decelerating economy.
** Battery giant CATL reversed its early gains and ended the session down 1.7%, despite strong earnings, after state media said shares related to the vehicle sector at new energies in China were overheating. (Report by Shanghai Newsroom, edited by Sherry Jacob-Phillips)