Chinese stocks fall to 7-month low on growth concerns after PBOC’s easing hint

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Chinese stocks fall as central bank hints at policy easing stoked growth jitters; Hong Kong markets closed due to Typhoon Yagi.

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An investor at a brokerage in Beijing. Photo: Reuters

Zhang Shidongin Shanghai

Published: 10:32am, 6 Sep 2024Updated: 3:42pm, 6 Sep 2024

Chinese stocks traded at a seven-month low after a hint at more monetary easing from the nation’s central bank intensified concerns about the growth outlook.

Hong Kong’s market did not trade Friday because of a typhoon.

The Shanghai Composite Index dropped 0.8 per cent to 2,765.81 at the close, its lowest level since February 5. The benchmark fell 2.7 per cent this week, making for a third weekly loss. The CSI 300 Index also lost 0.8 per cent, while the Shenzhen Composite Index slid 1.6 per cent.

Trading in Hong Kong’s financial markets was cancelled for the day after the city issued its first No. 8 storm warning this year due to Typhoon Yagi, according to Hong Kong Exchanges and Clearing. The storm halted activity in the city, with cancelled fights and scaled-back services for commuters.

The Hang Seng Index capped the shortened trading week with a 3 per cent decline, triggered by worries about China’s weak economic situation and a slew of disappointing earnings results.

On the China economic front, a cut in banks’ reserve-requirement ratio remained an option given that the ratio was at about 7 per cent for commercial lenders, said Zou Lan, head of the monetary policy department at the People’s Bank of China, at a briefing in Beijing on Thursday.