Chinese stocks fell, sending the Hang Seng China Enterprises Index to its biggest weekly drop since October, amid deepening concern that weaker economic growth will curb earnings and spur corporate defaults.
China’s benchmark stock index fell before tomorrow’s industrial production data as a slump in energy producers overshadowed gains for financial companies. The Hang Seng China Enterprises Index approached a bear market.
China’s stocks rose on their first day of trading after a weeklong holiday as rallies for technology and small-company shares overshadowed manufacturing and services data signaling an economic slowdown.
China’s stocks rose to the highest level in a month after the government extended subsidies for automakers and analysts said consumer spending during the lunar New Year holidays will support economic growth.
Chinese stocks rose after a unit of nation’s sovereign wealth fund boosted its stakes in the biggest lenders, overshadowing concern regulators will resume approving initial public offerings next month.
Most Chinese stocks fell after a manufacturing gauge declined and on speculation the government will announce property curbs. A rally for energy shares almost erased a loss of as much as 1.3 percent for the benchmark index.
China’s stocks rose, with a gauge of utilities surging the most in two years, on speculation the government will introduce measures to boost economic growth at a Communist Party meeting and after the largest oil companies reported increased profit.
China’s stocks fell for an eighth day, capping the benchmark index’s longest losing streak since June, on concern higher funding costs will hurt economic growth. Financial, industrial and drug companies led declines.