(Updates to close)
By Summer Zhen
HONG KONG, Oct 13 (Reuters) – Chinese stocks closed lower on Thursday, while Hong Kong stocks extended losses as risk sentiment prevailed ahead of U.S. inflation data and the 20th Congress. of the Chinese Communist Party.
** China’s blue-chip CSI 300 index fell 0.84%, while the Shanghai Composite index edged down 0.3%.
**Hong Kong’s Hang Seng Index was down 1.87% and China’s Corporate Hang Seng Index was down 2.31%, marking a six-day losing streak.
**Asian stocks followed Wall Street’s decline and bond yields remained depressed as investors weighed recession risks amid a hawkish Federal Reserve and uncertainty over the Bank of England’s commitment to stabilize the markets.
** The White House on Wednesday rolled out a long-delayed national security strategy that aims to contain China’s rise while re-emphasizing the importance of working with allies to address the challenges facing democratic nations.
** China’s export growth is expected to slow further in September due to weaker foreign demand.
**For three consecutive days this week, People’s Daily, the Communist Party’s official newspaper, has stressed that China will continue with the current strict COVID-19 policies.
** Liang Wannian, head of China’s expert group on COVID-19 response under the National Health Commission, told China Central Television on Wednesday evening that there was “no specific timeline” to end the “dynamic zero” strategy.
** The Hong Kong government is unlikely to further relax the border rules of the current “0+3” deal any time soon, the South China Morning Post reported.
**“Investors are losing hope on any short-term COVID-19 policy easing or meaningful economic stimulus. On the other hand, Asian countries continue to see capital outflows as inflationary pressure is still high,” said Steven Leung, managing director at UOB Kay Hian.
** Energy stocks and Chinese property developers were among the biggest losers, down 3.8% and 2.6%, respectively. Semiconductor companies fell 0.5% after a rally yesterday.
** The healthcare sector jumped 3.2% and computer-related names rose 2.3%.
** In Hong Kong, big tech companies dragged the market lower, with the Hang Seng Tech index falling 3.4%.
**JD.com fell 4.7%, Tencent and Meituan fell 2.9% respectively. (Reporting by Summer Zhen; Editing by Subhranshu Sahu and Uttaresh.V)