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China, Hong Kong stocks fall after Fed's surprise turn

06/21/2021 | 12:38am EDT

* SSEC -0.2%, CSI300 -0.6%, HSI -1.4%

* HK->Shanghai Connect daily quota used -1.7%, Shanghai->HK daily quota used 0.5%

* FTSE China A50 -1.1%

SHANGHAI, June 21 (Reuters) - China and Hong Kong stocks fell on Monday, tracking other Asian markets, as investors continued to ponder the implications of the U.S. Federal Reserve's surprise hawkish shift last week.

** The CSI300 index fell 0.6% to 5,073.36 points at the end of the morning session, while the Shanghai Composite Index dipped 0.2% to 3,517.17 points.

** The Hang Seng index dropped 1.4% to 28,413.42 points, while the Hong Kong China Enterprises Index fell 1.1% to 10,533.91.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.36%, while Japan's Nikkei index was down 3.59%.

** U.S. St. Louis Federal Reserve President James Bullard said on Friday that the U.S. central bank's shift towards a faster tightening of monetary policy was a "natural" response to economic growth and particularly inflation moving quicker than expected as the country reopens from the COVID-19 pandemic.

** Analysts said a hawkish Fed could lead to a stronger dollar and a weaker yuan, pressuring on the A-share market by prompting foreign outflows.

** The A-share market will be under heavy pressure against a backdrop of a strong dollar, said Yan Kaiwen, an analyst with China Fortune Securities.

** Investors on Monday sold a net 764 million yuan ($118.14 million) worth of A-shares via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.

** Meanwhile, the dollar held near multi-month peaks against other major currencies on Monday.

** China kept its benchmark lending rate for corporate and household loans unchanged for the 14th straight month at its June fixing on Monday, in line with market expectations.

** The Financial News, backed by the Peoples Bank of China (PBOC), on Sunday advised against speculating about liquidity tightening and policy direction, saying such action can mislead and roil markets. ($1 = 6.4669 Chinese yuan renminbi) (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Amy Caren Daniel)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AECC AERO SCIENCE AND TECHNOLOGY CO.,LTD -2.55% 20.27 End-of-day quote.-27.61%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) 0.00% 0.7121 Delayed Quote.-2.20%
BANK OF CHINA LIMITED 0.36% 2.79 Delayed Quote.-0.71%
BRITISH POUND / US DOLLAR (GBP/USD) 0.00% 1.213 Delayed Quote.-9.87%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.09% 0.7823 Delayed Quote.-1.00%
CHINA EVERGRANDE GROUP 8.55% 1.65 Delayed Quote.3.77%
CHINA FEIHE LIMITED -0.85% 7.01 Delayed Quote.-32.98%
EURO / US DOLLAR (EUR/USD) -0.60% 1.0258 Delayed Quote.-9.78%
FUJIAN FURI ELECTRONICS CO.,LTD -0.92% 7.55 End-of-day quote.-26.48%
GEELY AUTOMOBILE HOLDINGS LIMITED 0.58% 17.44 Delayed Quote.-18.12%
HONG KONG HANG SENG 0.46% 20175.62 Delayed Quote.-16.18%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.05% 0.01256 Delayed Quote.-6.43%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.02% 0.6453 Delayed Quote.-5.90%
NIKKEI 225 2.62% 28546.98 Real-time Quote.-3.38%
SHANXI XINGHUACUN FEN WINE FACTORY CO.,LTD. 1.95% 283.27 End-of-day quote.-10.30%
SHEDE SPIRITS CO., LTD. 2.58% 168.44 End-of-day quote.-25.90%
SINO-AGRI LEADING BIOSCIENCES CO.,LTD -0.52% 30.55 End-of-day quote.17.27%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.11% 6.7307 Delayed Quote.6.00%
WUXI NEW HONGTAI ELECTRICAL TECHNOLOGY CO.,LTD -1.87% 22 End-of-day quote.-5.17%
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