China stocks fall fur­ther as CSRC re­vises rules

Global Times US Edition - - BIZMARKETS -

China stocks fell over 1 per­cent on Fri­day, mak­ing a fifth straight ses­sion of losses, dragged by fi­nan­cials af­ter the bank­ing and in­sur­ance reg­u­la­tor pushed for more credit sup­port to pri­vate com­pa­nies.

Track­ing losses in broader Asian mar­kets, Hong Kong stocks fared worse than those in the main­land.

The Hang Seng In­dex was down 2.4 per­cent at 25,601.15. Chi­nese H-shares listed in Hong Kong fell 2.7 per­cent to 10,419.5.

Around the re­gion, MSCI’s Asia ex-Ja­pan stock in­dex was weaker by 1.5 per­cent, while Ja­pan’s Nikkei in­dex was down 0.9 per­cent, af­ter the Fed’s state­ment overnight showed that the cen­tral bank ap­peared poised to de­liver an­other in­ter­est rate hike next month.

On Fri­day, US stocks fell with shares of tech­nol­ogy, en­ergy and in­dus­trial com­pa­nies taking a hit.

As in­vestors shunned growth stocks, the S&P tech­nol­ogy in­dex fell 1.76 per­cent, led by Ap­ple Inc’s 2.4 per­cent slide and semi­con­duc­tor stocks tum­bling 2.21 per­cent.

The yuan was quoted at 6.9469 per US dol­lar on Fri­day, drop­ping 0.19 per­cent, weaker than the pre­vi­ous close of 6.934.

The Shang­hai stock in­dex was down 2.8 per­cent last week, while China’s H-share in­dex was down 2.5 per­cent.

China’s se­cu­ri­ties reg­u­la­tor pub­lished re­vised rules on Fri­day that would al­low listed com­pa­nies to is­sue ad­di­tional shares more fre­quently, and for broader use.

The China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion said at a press con­fer­ence that money raised via pri­vate share place­ment can be fully used to re­plen­ish op­er­at­ing cap­i­tal and re­pay debts, ac­cord­ing to the Xin­hua News Agency.

Mean­while, qual­i­fied com­pa­nies are now al­lowed to sell ad­di­tional shares six months af­ter the pre­vi­ous round of fi­nanc­ing, com­pared with a min­i­mum pe­riod of 18 months pre­vi­ously.

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