China stocks slide as traders take profit after sharp recent run
Bloomberg · 12 Dec 2022 471 Views

CHINESE stocks slid on Monday (Dec 12) amid some profit-taking following their sharp recent gains and as general caution prevailed in equity markets ahead of global central bank meetings.

The Hang Seng China Enterprises Index slipped as much as 3.1 per cent, with technology stocks such as Meituan and Alibaba Group Holding being the biggest drags. Country Garden Services Holdings was the top loser on the gauge, plunging more than 18 per cent after chairman Yang Huiyan agreed to sell a stake.

Investors seem to be taking some money off the table after optimism over reopening spurred a sharp surge in Chinese markets. The Hang Seng China gauge jumped 7.3 per cent in the last five sessions following a similar gain in the week before. Asian equities were broadly lower on Monday as traders awaited key US inflation data and interest-rate decisions from the Federal Reserve and the European Central Bank later in the week.

“Investors are cutting risks” ahead of central bank meetings, said Steven Leung, executive director at UOB Kay Hian (Hong Kong). He also cited some profit-taking after China’s recent gains.

China’s onshore benchmark CSI 300 Index was down 0.9 per cent; Hong Kong’s Hang Seng Index was down 2.3 per cent. A gauge of Chinese tech stocks listed in the Asian financial hub slid as much as 4 per cent.

Meanwhile, Chinese airlines and travel-related shares traded largely higher in Monday’s session. Reopening is expected to be the dominant theme for the market in the new year, with many global investors citing it as the key reason to be bullish on local stocks.

About 60 per cent of respondents in a Bloomberg News survey of the world’s top money managers recommended buying the country’s stocks, while 31 per cent said they are a sell.

(Source : Bloomberg) , all rights reserved by original source.