China’s shares closed lower on Friday as faster credit growth in January failed to boost investor sentiment, while concerns about more aggressive U.S interest rate hikes after red-hot inflation data also weighed. The blue-chip CSI300 index fell 0.8% to 4,601.40 while Shanghai The Composite Index lost 0.7% to 3,462.95 points.
** For the week, the CSI300 index rose 0.8% while Shanghai The Composite Index jumped the most in five months by 3%. ** New bank lending China more than tripled in January compared to the previous month, beating forecasts and breaking records. The growth in outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, also accelerated and reached a level of six months.
** “Demand from the real economy is still quite weak, especially real estate demand has not recovered,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, as “most of the growth comes from short-term loans and bill financing. Medium- and long-term loans to households (mainly mortgages) have actually declined compared to last year.” ** “(A-stock market) sentiment could remain within macro uncertainties, Omicronupcoming earnings season and the escalation of tensions between the US and China, “he said Morgan Stanley in a note.
** That U.S consumer prices rose sharply in January, leading to the largest annual increase in inflation in 40 years, which could spark speculation in financial markets about a 50 basis point rate hike from Federal Reserve next month. ** Chinese Property developers rose 1.2% after a media report China will give real estate companies easier access to the proceeds from housing projects, which will ease the liquidity pressure on the sector.
** Financial stocks and energy companies rose 1% and 1.5%, respectively. ** Insurance companies rose 2.6%, with China Life Insurance Co jumps 7.3%,
** However, the start-up market ChiNext fell by almost 3%. ** The health sector fell 3.2%, new energy stocks lost 2.3%, and semiconductors closed 1.4% lower.
(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)