China stocks decline on COVID, economic woes; property shares jump

China stocks closed down on Friday as concerns over rising COVID-19 cases and a sluggish economic recovery lingered, while real estate developers shined during the week on expectations that authorities would support the embattled sector.

The blue-chip CSI300 index fell 0.7%, while the Shanghai Composite Index lost 0.6%. The Hang Seng index rose 0.1%, while the China Enterprises Index gained 0.3%.

** For the week, the CSI 300 index went down nearly 1%, while the Hang Seng index dropped 2%. ** The tech-focused STAR market declined 3.3%, while semiconductors and new energy firms lost nearly 3% each.

** Concerns about rising COVID-19 cases lingered. Mainland China reported 2,804 new cases for Thursday, down slightly from over 3,000 daily cases from previous two days. ** Real estate developers jumped 2.8% while energy companies added 2.3%.

** China is widely expected to lower its benchmark lending rates on Monday, a Reuters survey showed, with a vast majority of participants predicting a deeper cut to the mortgage reference to lift the ailing property sector and the overall economy. ** The five-year tenor, where all 30 participants expected a cut, influences the pricing of home mortgages.

** Property developers soared 6.5% for the week, amid stimulus expectations as sources told Reuters that China will guarantee new onshore bond issues by a few select private developers. ** China has issued its first national drought alert of the year, as local governments race to maintain power and find fresh water to irrigate crops ahead of the autumn harvest.

** Analysts said investors would keep an eye on whether the shortage in power supply impacts enterprises’ operations and short-term economic development. ** China’s cyberspace watchdog wants to build an “affectionate” relationship between internet enterprises and the government, a senior official said, the latest verbal assurance to an industry still on edge after a long and bruising regulatory crackdown.

** Tech giants listed in Hong Kong closed flat after the news, and were down 3.6% for the week, as an audit deal between the Chinese and U.S. regulators remained uncertain.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)