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Chinese stocks fall after weak December lending data; property, lower consumption

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SHANGHAI – Chinese stocks fell on Thursday after new bank loans to China fell more than expected in December compared to the previous month, led by real estate developers and consumer stocks.

The CSI300 index fell 0.6% to 4,818.76 at the end of the morning session, while the Shanghai Composite Index lost 0.3% to 3,586.29.

The Hang Seng Index rose 0.1% to 24,421.83. The Hong Kong China Enterprises index lost 0.1% to 8,603.07.

** Chinese banks made 1.13 trillion yuan ($ 177.56 billion) in new yuan loans in December, up from 1.27 trillion yuan in November, but loans for the full year 2021 set a record.

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** China’s inflation data rose more slowly than expected in December, as the country grapples with its latest COVID-19 outbreaks, with the Omicron variant being detected in several cities.

** “Although the Omicron outbreak and the decline in CPI inflation in December increase the likelihood of a slight cut in PBoC key rates in the near term, we believe there is enough space. limited and that the impact of a rate cut may also be quite small. , especially if the long-term LPR is not scaled down, ”Nomura said in a note.

** Real estate developers fell 2%, while consumer staples and information technology fell 1.3% and 0.9% respectively.

** However, energy stocks gained 2.3%, coal miners up 2.8%.

** Hong Kong stocks edged up on the gain of the heavyweights of the AIA index.

** Hang Seng Tech index was down 1.5%, Tencent Holdings was down 1.4%.

** However, insurer AIA Group rose 1.7% to become the biggest contributor to the rise in the Hang Seng index.

** Hang Seng Composite Index-Energy gained 2.5%, with PetroChina Co Ltd up 2.1% after forecasting strong profits in 2021 on rising crude prices.

** Mainland developers listed in Hong Kong fell 3%, driven by a 16% drop in Sunac China Holdings Ltd after forecasting the sale of 452 million new shares for loan repayment and general purposes of the ‘business.

(Reporting by Shanghai Newsroom; editing by Uttaresh.V)