Update | China stocks end lower as IPO resumption looms, Hong Kong shares also down on weakness in tech and autos
Major indexes reverse from early gains to end lower
Chinese stocks reversed from earlier gains to close lower on Thursday, as investors looked ahead to the resumption of IPOs next week, with the first batch of 10 slated to begin order taking following a four-month ban on new listings.
The Shanghai Composite Index dropped 0.3 per cent to end at 3,635.55, snapping a two-day winning streak. The large-cap CSI300 finished 0.6 per cent lower at 3,759.43. Turnover increased to 426 billion yuan in Shanghai, against 382 billion yuan on Wednesday.
The tech-heavy Shenzhen Composite Index lost 0.8 per cent to 2,325.69, and the ChiNext Index, a gauge tracking smaller companies in Shenzhen, tumbled 2.2 per cent to 2,833.20.
Hong Kong stocks also reversed from earlier gains to close in negative territory, with the Hang Seng Index ended down 0.1 per cent at 22,488.94, extending its losing streak to a fourth day. The Hang Seng China Enterprises Index edged 0.2 per cent lower to 10,108.39. Turnover remained low, easing to HK$62 billion from HK$65 billion in the prior session.
In currencies, the People’s Bank of China set the yuan midpoint at 6.3896 per US dollar on Thursday, 19 basis points weaker than Wednesday’s level. The onshore yuan traded almost unchanged at 6.3895 per dollar, while the offshore yuan weakened 0.17 per cent to 6.4326 to the dollar.
