China stocks track Wall Street fall to post biggest drop in two weeks

Credit: REUTERS/Aly Song

China shares ended lower on Thursday, after falling the most in more than two weeks, taking cues from an overnight slump on Wall Street on renewed concerns over a coronavirus-led slowdown in global economic recovery.

SSEC -1.72%, CSI300 -1.92%, SZSC -2.32%

China to allow more qualified foreign investors investing in Chinese listed firms

U.S. Fed officials call for more fiscal support

BEIJING/SHANGHAI, Sept 24 (Reuters) - China shares ended lower on Thursday, after falling the most in more than two weeks, taking cues from an overnight slump on Wall Street on renewed concerns over a coronavirus-led slowdown in global economic recovery.

** At the close, the Shanghai Composite index .SSEC was down 1.72% at 3,223.18, while the blue-chip CSI300 index .CSI300 was down 1.92%, both posting their biggest one-day percentage drop since Sept 9.

** The financial sector sub-index .CSI300FS was lower by 1.35% and the consumer staples sector .CSI000912 shed 1.68%. The real estate index .CSI000952 was down 1.86% and the healthcare sub-index .CSI300HC lost 1.63%.

** The smaller Shenzhen index .SZSC ended down 2.32% and the start-up board ChiNext Composite index .CNT was weaker by 2.462%.

** U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday the U.S. economy remains in a "deep hole" of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers "are not even going to begin thinking" about raising interest rates until inflation hits 2%.

** Consecutive drops and resurgence in coronavirus cases abroad is delaying recovery in the United States and leading to market slumps, said Zhang Yanbing, an analyst with Zheshang Securities. "The downward trend in mainland A-shares will be limited as China is achieving a better recovery."

** China's cabinet said it would allow more qualified foreign investors to make a strategic investment in Chinese listed companies, state television reported.

** Shares of Brilliance China Automotive Holdings Ltd 1114.HK rose to their highest since Aug. 25 after Reuters reported that state-backed investors are considering taking BMW's BMWG.DE Chinese partner private.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.04%, while Japan's Nikkei index .N225 closed down 1.11%.

** At 07:05 GMT, the yuan CNY=CFXS was quoted at 6.8223 per U.S. dollar, 0.2% weaker than the previous close of 6.809.

(Reporting by Zhang Yan in Beijing, and Andrew Galbraith in Shanghai; Editing by Ramakrishnan M.)

((zoey.zhang@thomsonreuters.com))

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