China’s Stocks Slip to 2017 Low Led by Energy, Mining DeclinesBloomberg News
Oil producers slide after crude falls to the lowest in a week
Volatility wanes in the wake of Monday’s sudden tumble
Chinese stocks slipped to the lowest level this year, with energy and mining companies leading declines.
The Shanghai Composite Index dropped 0.4 percent to the lowest close since Dec. 29. Energy companies dragged down the gauge, led by China Petroleum & Chemical Corp., after New York crude slid on Wednesday. Shandong Gold Mining Co. lost 2.5 percent after the price of the precious metal fell the most in more than a month overnight. The Shanghai gauge’s short-term volatility held near a September low.
After Monday’s slump, China’s stocks have stabilized amid speculated state intervention during President Xi Jinping’s appearance at the World Economic Forum in Davos. Policy makers have also been supporting the nation’s debt and currency markets, with the People’s Bank of China on track for the biggest week of cash injections on record. Data released Wednesday showed the country’s holdings of U.S. Treasuries dropped in November by the most since 2011 as authorities acted to bolster the yuan.
"Chinese markets are likely to fluctuate ahead of the Chinese New Year instead of showing a clear direction either way," said Linus Yip, a strategist at First Shanghai Securities Ltd. in Hong Kong. "Investors expect the Chinese government to continue stabilizing markets before the holiday."
The Shenzhen Composite Index slid 0.4 percent. Hong Kong’s benchmark Hang Seng Index fell 0.2 percent and a gauge of the city’s property developers retreated 0.9 percent. The Hong Kong exchange will decide on a third board this year, Chief Executive Officer Charles Li told reporters.
- Cathay Pacific Airways Ltd. shares slid 3.9%, the most in three months, after the carrier’s business revamp plan announced Wednesday provided insufficient detail to soothe investor concerns over a slide in earnings
- Henderson Land Development Corp Ltd. fell 1.6% after Morgan Stanley cut its investment rating on Hong Kong property stocks to in-line from attractive
— With assistance by Emma Dai