SHANGHAI (Reuters) – China stocks fell on Wednesday, dragged by real estate shares, while rating agency Fitch revised its outlook on China to negative. Hong Kong shares were up, led by tech stocks.
Ratings agency Fitch revised its outlook on China to negative on Tuesday, citing increasing risks to the country’s public finance outlook.
China stocks were closed for midday break before the release of the rating downgrade.
Several property developers reported weakening sales in March, suggesting continued pressure for the sector and dragging real estate shares down.
Investors are also awaiting for a string of key economic data due this week and the next week to gauge policy paths.
** The index retreated 0.34% at 3,038.25 points by the midday break, while the blue-chip CSI 300 index was down 0.43%.
** Financial stocks, consumer staples, healthcare and real estate fell between 0.18% and 3.17%.
** The Shenzhen index was down 1.46%, the startup board ChiNext Composite index weakened 1.87% and Shanghai’s tech-focused STAR50 index declined 1.57%.
** Chinese H-shares listed in Hong Kong rose 2.15% to 6,021.79, while the was up 1.88% at 17,144.54.
** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.74% while index was down 0.31%.
** The yuan was quoted at 7.2306 per U.S. dollar, 0.03% firmer thanthe previous close of 7.2329.
** The largest percentage gainers in the main Shanghai Composite index were Shaanxi Construction Machinery Co, up 10.04%, followed by SEC Electric Machinery Co gaining 10.03%, and Ningbo Zhongbai Co, up by 10.03%.
** The largest percentage losses in the Shanghai index were Beijing Kawin Technology Share-Holding Co, down 19.652%, followed by Shanghai Prosolar Resources Development Co losing 10.019%, and Shanghai Lianming Machinery Co, down by 10.013%.