China stocks fall; see record monthly foreign inflows

China and Hong Kong stocks fell on Tuesday as investors locked in gains after a strong rally that was fuelled by record monthly foreign inflows, although analysts predict further upside ahead, citing growing signs of a post-COVID economic recovery. ** The correction could also be triggered by signs of an escalating Sino-U.S. tech war, and risk-off sentiment ahead of this week's U.S. rate decision, Morgan Stanley said, adding the bank "would take the current opportunity to recommend buy-the-dip." ** China's bluechip CSI300 Index lost 0.8% by the lunch break, while the Shanghai Composite Index fell 0.4%. Hong Kong's benchmark Hang Seng dropped 1.3%. ** For the month, though, CSI300 is set to jump nearly 8%, while Hang Seng is on track to gain 10%. ** The recent market rebound was fuelled by strong foreign money inflows, as global funds bet on China recovery after Beijing dropped strict COVID curbs last month. ** Despite the week-long Spring Festival break, China's onshore stock market witnessed roughly 140 billion yuan ($20.72 billion) in net foreign buying via Stock Connect in January, registering the biggest monthly inflows on record. It also surpassed total inflows in 2022. ** Meanwhile, official data on Tuesday showed that China's economic activity swung back to growth in January, confirming that the economy had bottomed in December. ** "We expect economic momentum to improve further in Q1 and Q2 as the service sector recovers and consumption normalizes," wrote Zhiwei Zhang, president of Pinpoint Asset Management. ** But most China stocks fell on Tuesday as caution reigned. ** China tech stocks dropped after news that the Biden administration has stopped approvinglicenses for U.S. companies to export most items to China's Huawei, signalling an escalating of the tech war. ** Hong Kong tech shares also fell, following an overnight slump in U.S.-listed China stocks. ** Morgan Stanley said it stays overweight on Chinese equities, citing on-track economic recovery, signs of Sino-U.S. ties stabilization, low correlation with the U.S. market, and attract valuation. ($1 = 6.7570 Chinese yuan) (Reporting by Shanghai Newsroom; editing by Uttaresh.V)

China stocks fall; see record monthly foreign inflows

DISCOVER MORE

China Energy plans 1000 MW floating solar plant in Zimbabwe

China will maintain certain level of growth -Premier Li

China is willing to work with ASEAN countries - foreign ministry

Blast near Afghan foreign ministry kills 6, hurts several

Jack Ma returns to China as govt tries to allay private sector fears

Thai election to be a close race between parties, surveys show

China 2023 oil refinery output forecast to rise 8% on demand recovery

Japan's Nikkei bounces as weaker yen lifts sentiment; banks weigh

Egypt's central bank likely to hike interest rates by 3% - HSBC

Saudi National Bank's chairman resigns; Al Ghamdi takes over

UAE exchange firm Al Ansari raises $210mln in IPO

Banking turmoil: Fitch Solutions revise 2023 gold price forecast to $1,950 an ounce

UAE's Aldar to build new flats, penthouses dedicated to holistic health, wellbeing

China stocks fall on industrial profit slump, geopolitical tensions; HK down

China stocks fall as rising Sino-U.S. tensions dent sentiment

China, HK stocks rise as easing banking contagion fears lift sentiment

Beijing may allow foreign financial firms to list in China - ex-finance minister

China stocks rebound amid recovery signs, easing concerns about banks

LATEST VIDEO

VIDEO: LSE-listing will facilitate more funding opportunities for us, Dar Global CEO

ZAWYA COVERAGE

Near-term oil prices volatile; outlook still positive – UBS

Aramco to acquire 10% stake in China-listed Rongsheng Petrohemical

Saudi banks likely to remain profitable in 2023 – A&M

Kenya, South Africa airlines to finalise partnership strategy in 2024 to boost growth

Indian govt has 54 Chinese investment proposals pending - finance minister

Mideast Stocks: Gulf markets mostly subdued despite rising oil prices

Ramadan in Dubai: Here is where you will find the police's mobile cannon

Dubai Taxi announces trial of new electric vehicle from Skywell

UAE: Want to avoid wasting food this Ramadan? 7 ways to have a sustainable holy month

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE