China stocks snap 3-day rising streak as property market slowdown weighs

Reuters2021-08-26

SHANGHAI, Aug 26 (Reuters) - China stocks snapped a three-day winning streak to end lower on Thursday, as tech shares stepped back after a sharp rebound, while a slowdown in the country's property market deepened concerns over the economic health.

Investors also looked towards the Jackson Hole Symposium for assurances that the Federal Reserve won't be rushing in to tighten policy, a move that could trigger capital outflows from emerging markets.

The blue-chip CSI300 index closed 2% lower at 4,801.61 points, while the Shanghai Composite Index lost 1.2% to 3,501.66 points.

China's tech-heavy STAR 50 Index slumped nearly 3% to its lowest closing level in two months. Shenzhen's start-up board ChiNext lost 2%.

China has cracked down on private tutoring, brought monopolistic tech giants to their knees, and stepped up curbs on home-buying.

China's real-estate stocks fell nearly 2% as concerns deepen that draconian government curbs could hurt developers' profitability.

China Evergrande Group, China's most indebted property developer, forecast a slump of as much as 39% in its first-half profit, citing a drop in selling prices and higher expenses.

Growth in China's home prices is expected to slow more than initially expected this year, as more cities implement curbs to stabilise their real-estate markets and banks maintain tight credit quotas for developers, a Reuters poll showed.

China's banking shares fell sharply, amid fears that lenders' asset quality could suffer in a slowing property market, and a decelerating economy.

Battery giant CATL wiped out early gains and ended the session down 1.7%, despite its stellar earnings, after a state media said stocks related to China's new energy vehicle sector were overheating.

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