SHANGHAI: Chinese blue chips ended lower on Monday, dragged down by semiconductors and tourism stocks, after official data showed new bank loans to Beijing rose less than expected last month, while Shanghai shares closed higher.
The leading CSI300 index fell 0.4% to 4,991.66, while the Shanghai Composite Index gained 0.3% to 3,715.37 points.
Chinese banks granted 1.22 trillion yuan ($ 189.51 billion) in new yuan loans in August, up from July but below analysts’ expectations.
Economic data in recent months has shown that China’s strong post-COVID recovery is faltering as growth returns to more normal levels and new virus outbreaks disrupt activity. But the authorities are trying to maintain broader growth while controlling riskier areas such as the real estate sector.
âNext year is an important year for the government as the ruling party will hold its 20th National Congress,â Zhiwei Zhang, chief economist of Pinpoint Asset Management said in a note.
The government does not seem in a rush to relax its policies just yet. They might prefer to increase budget spending towards the end of the year to stimulate growth next yearZhiwei Zhang, Chief Economist, Pinpoint Asset Management
A tourism-tracking sub-index fell 4.3% as China reported the most locally transmitted coronavirus cases a month before the Oct. 1 national holiday.
Chipmakers fell 4.2% after the Chinese market regulator said last Friday it fined three auto chip companies for pushing up prices.
The new energy vehicles sub-index fell 0.8% after China’s Minister of Industry and Information Technology said the country had “too many” electric vehicle (EV) manufacturers and that the government would encourage consolidation.
Resource-related stocks jumped 4.3%, while real estate developers jumped 3.6%.
The environmental governance sub-index rose 2.7% on Beijing’s plans to create the first green stock index in its latest campaign to cut carbon emissions.