Shanghai shutdown weighs on blue-chip Chinese companies as COVID cases rise

Blue chip Chinese stocks closed lower on Monday after a lockdown in Shanghai to curb the spread of COVID-19. Fears increased of an economic slowdown, but Hong Kong was buoyed by tech companies. She increased for the first time in three sessions. Its CSI300 blue chip index fell 0.6% to 4,148.47, while the Shanghai Composite Index rose 0.1% to 3,214.50. The Hang Seng Index rose 1.3% to 21,684.97 points, while the Chinese Enterprise Index rose 1.5% to 7,396.25 points. China’s financial hub of Shanghai launched its planned two-phase lockdown in the city of 26 million on Monday.

Goldman Sachs analysts have said further steps to ease monetary and fiscal policies are expected amid a resurgence in coronavirus infections. China’s securities regulator said the resurgence of coronavirus infections had already slowed. He said he would soon introduce measures to facilitate the issuance of bonds by private companies, amid threats to the national economy. Discretionary consumption It fell 1.7% and liquor manufacturers fell 3.4%.

Shanghai reported its record 3,450 asymptomatic COVID cases on Sunday, accounting for nearly 70% of the country’s total, as well as 50 symptomatic cases. “With Omicron’s high transferability and enhanced ZCS (Zero COVID Strategy), the market should be particularly concerned about slowing growth in the second quarter,” Nomura analysts said in a statement. China’s industrial profit growth accelerated in January-February, in line with other signs of economic dynamism.

New energy, semiconductor and non-ferrous metal stocks fell 1% to 1.6%. On the positive side, real estate development stocks rose 1.9% and energy stocks 3.4%. In Hong Kong, Meituan rose 11.6% after food suppliers reported better-than-expected fourth-quarter sales growth on Friday. Hong Kong-listed tech companies were up 2.6% for him, with Alibaba Group and Tencent Holdings each up 3.5% and him up 2.8%.

“The difference between best and worst case for these companies is the timing of listing, and the CSRC (China Securities Regulatory Commission) has come to the rescue.”

Chinese regulators and US regulators are working hard to resolve audit disputes affecting US-listed Chinese companies and look forward to reaching effective and lasting cooperation as soon as possible. Aiming, state management. Last week, the US public company accounting regulator said recent media speculation about an impending deal with China was “premature”. There appears to be an irreconcilable disagreement between the authorities,” Hao Hong, head of investigations at BOCOM International, said in a statement on Monday.

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  • Shanghai shutdown weighs on blue-chip Chinese companies as COVID cases rise
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