By Summer Zhen
HONG KONG, May 15 (Reuters) - China stocks started the
week on a weak foot Monday, as a slew of downbeat economic data
dampened investor confidence and heightened deflation fears.
** China's blue-chip CSI 300 Index dipped 0.24%,
while the Shanghai Composite Index fell 0.94%.
** Hong Kong's Hang Seng Index inched up 0.14%, and
the Hang Seng China Enterprises Index were flat.
** The country's central bank on Monday rolled over maturing
medium-term policy loans while keeping interest rates unchanged,
despite growing concerns on the subdued recovery.
** Yuan on Monday weakened to its lowest point in more than
two months after the dollar firmed on a jump in U.S. consumers'
long-term inflation expectations.
** "Market sentiment remains very weak in our client
conversations," Hui Shan, chief China economist at Goldman Sachs
said in a note.
** Discussions have quickly turned from "policymakers may
tighten on better-than-expected data" last month to "policy
should ease to stem deflation risks", after April imports,
inflation and bank lending data all missed consensus
expectations last week, she said.
** On the geopolitical front, Washington and the EU will
pledge joint action to tackle concerns focused on China about
non-market practices and coordinate their export controls on
semiconductors and other goods at a meeting this month, Reuters
reported.
** Media stocks and telecom stocks fell 4%
and 3.2% respectively.
** However, new energy sector jumped 2.9%,
capping some losses.
** Hong Kong-listed tech firms slid 0.1%. Index
heavyweight Tencent Holdings Ltd gained 2.7%.
** U.S.-listed Chinese ADRs including and Tencent and
Alibaba Group Holding Ltd are due to report
first-quarter earnings this week.
(Reporting by Summer Zhen; Editing by Varun H K)
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