China’s three major A-share indices closed on Friday (28), all down more than 2%, and the Shanghai index hit a new six-month low as the US reaches a deal with its allies. to limit the loss of chip manufacturing equipment.
The Shanghai Composite Index fell 2.25% to 2,915.93 points on Friday, the lowest since April 27, the Shenzhen Component Index fell 3.24% to 10,401.84 points and the ChiNext Index fell by 3.71% at 2,250.51 points;RMB 909.7 billion yuan, and net sales of “Northbound funds” were 2.032 billion yuan.
The agricultural group spearheaded the decline and inventories of chemicals, steel, automotive, building materials, gas, non-ferrous metals, electricity, real estate, food and drink all dropped dramatically.
Hong Kong’s Hang Seng Index closed down 3.66% and the Hang Seng Technology Index fell 5.56%.
Alan Estevez, the U.S. Undersecretary of Commerce for Industry and Security, said on Thursday (27) that a deal with global allies to limit the export of semiconductor manufacturing equipment to China is expected in the near future. .
“We expect a near-term agreement” to make progress on multinational regulation, Estevez said. If that happens, it will amplify the effect of the United States restricting China’s access to advanced semiconductor technology.
US President Joe Biden also said Thursday that strengthening local chip manufacturing has worried Chinese leader Xi Jinping, a move that will also help reduce the cost of cars, washing machines and cell phones for US consumers.
The disappointing results of the 20th National Congress of the Communist Party of China led to a sell-off in the Chinese and Hong Kong equity markets this week.
Yan Kaiwen, an analyst at Huaxin Securities, said the market remained under downward pressure due to disappointing “Big Twenty”, weak consumption, slow industrial profits and sporadic outbreaks.
Economists expect China’s economy to grow less than 5% annually through 2024, according to a new Bloomberg poll. The economists’ growth forecasts this year have been revised to 3.3% from 3.4%, to 4.9% next year from 5.1% and to 4.8% in 2024 from 5%.
