Chinese stocks went down on Thursday as the investors and stakeholders started becoming less confident about the swift recovery in the Chinese economy while waiting for more active and efficient stimulus policies to support the blow received from the pandemic. They believe that China needs a more proactive fiscal policy as the pressure on its economy continues to increase. Chinese policymakers have been reassuring the market with more active policies to fuel the economy. However, investors are waiting for the implementation to take place in order to support their confidence. The Shanghai Composite index fell by 0.47% at 2,884.41 at the midday break.
China’s blue-chip CSI300 index lost 0.57%, and its financial sector sub-index tumbled by almost 0.81%. The consumer staples sector was down by nearly 0.87%, and the real estate index fell by around 0.91%. The healthcare sub-index went up by 0.03%. The Chinese H-shares listed in Hong Kong fell by about 1.21%, while the Hang Seng Index fell by 1.11%. The smaller Shenzhen index was down by about 0.18%, and the start-up board ChiNext Composite index became weaker by around 0.19%. China reported 3 new COVID-19 cases on 13th May, down from 7 cases a day earlier, weeks after lifting the lockdown. MSCI’s Asia ex-Japan stock index dropped by about 0.91% while Japan’s Nikkei index was down by nearly 0.72%. The Yuan was recorded at 7.0969 per USD, about 0.08% weaker than its previous close.
Chinese investors and stakeholders are also highly worried about the higher selloff in Wall Street indexes due to several warnings from the U.S. Federal Reserve about an extended period of weak and stunted economic growth. Continuous weak demand from Europe and the U.S. is hurting China’s economy even though the Asian economy is on its path to a full recovery in production.