The benchmark CSI 300 Index dropped as much as 2 percent to head for its lowest close since April 2020. Tech and consumer staple drove the decline. The Hang Seng China Enterprises Index of Chinese stocks in Hong Kong slid more than 3 percent. The onshore yuan edged higher against the dollar.
“A slew of weak macro-economic data that China has released shows that there is very limited room for an economic rebound in the short term, which is hard to provide support for earnings and market confidence,” said Shen Meng, a director at investment bank Chanson & Co in Beijing. Rising bets for a 75-basis point Fed hike in November are also hurting sentiment in today’s onshore market, he said.
A gauge of Chinese tech stocks listed in Hong Kong plunged more than 4 percent on Monday. The city’s benchmark Hang Seng Index lost over 3 percent.Bleak tourism and entertainment spending data for the week-long holiday was another proof that consumer demand in China continues to weaken in the face of Beijing’s Covid curbs.