China stocks close down as bumpy recovery damps sentiment

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates to market close) SHANGHAI, April 20 (Reuters) - Chinese stocks fell on Thursday, although information technology shares shot up, as uneven economic recovery after this year's re-opening from stringent COVID curbs muted market sentiment.


** China's blue-chip CSI 300 Index closed down 0.3%, while the Shanghai Composite Index slipped 0.1%.
** The Hang Seng Index and the Hang Seng China Enterprises Index both edged up 0.1%.
** Other Asian stocks inched lower, while the dollar clung to overnight gains in cautious trade as U.S. Federal Reserve officials reiterated their commitment to reining in inflation, despite signs of mounting economic headwinds.
** Investor sentiment in China has been subdued after the world's second-largest economy reported first-quarter economic data on Tuesday. The gross domestic product figure beat market expectations but some data pointed towards uneven recovery trends.
** China kept its benchmark lending rates unchanged on Thursday for an eighth straight month, as economic recovery reduced the need for any immediate monetary support, bolstering views that the central bank was unlikely to ease policy rates in the near term to boost the economy.
** Even amid muted market sentiment, investors continue to bet on Artificial Intelligence (AI) stocks. Frenzy around Chinese equivalents of OpenAI's ChatGPT chatbot boosted shares of companies in the tech, media and telecom (TMT) sector.
** Shares of AI , semiconductor , and media companies jumped between 3% and 5.3% on Thursday.
** Analysts say surging AI stocks have drained money from other sectors such as the new energy and consumer companies, putting pressure on the market.
** New energy companies fell 2.8% on the day, and tourism firms dropped 2%.
** In Hong Kong, tech giants slipped 0.1%, and mainland property developers declined 1.6%. (Reporting by Shanghai Newsroom; Editing by Sonia Cheema and Clarence Fernandez)

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