china shares: China shares inch lower as EVs, tech firms drag; optimism around economy caps losses

BEIJING: China shares ended lower on Wednesday, dragged down by profit-taking in new-energy vehicle and technology stocks due to their high valuations, while confidence in the country’s economic recovery from the COVID-19 pandemic restrained the losses.

At the close, the Shanghai Composite index was down 0.09% at 3,325.02, narrowing the loss earlier in the day.

The blue-chip CSI300 index was down 0.01%, with its financial sector sub-index higher by 0.92%, the consumer staples sector down 0.08%, the real estate index up 0.27% and the healthcare sub-index down 0.07%.

The sub-index for new-energy vehicle manufacturers and suppliers dropped 2.29%, while the information technology sub-index shed 1.99%.

China’s biggest battery maker Contemporary Amperex Technology’ shares (CATL) dropped as much as 5.8% to 227.68 yuan after investors sold shares via the Stock Connect linking Hong Kong and mainland China.

The smaller Shenzhen index ended down 1.08% and the start-up board ChiNext Composite index was weaker by 1.461%.

China’s fiscal revenues grew 4.7% in the third quarter from a year earlier, the finance ministry said, as the country’s economic recovery picked up pace.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.25%, while Japan’s Nikkei index closed up 0.31%.

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