SHANGHAI, Sept 30 (Reuters) - China stocks edged lower
on Friday ahead of a week-long holiday, tracking overnight Wall
Street losses on inflation worries and recession risks, while a
subdued factory activity survey also weighed on sentiment.
** The blue-chip CSI 300 Index and the Shanghai
Composite Index both closed down 0.6%.
** The Hang Seng Index edged up 0.3%, while the Hang
Seng China Enterprises Index ended almost flat.
** For the quarter, the CSI 300 Index slumped 15.2% to post
its biggest quarterly loss since a stock market meltdown in
2015. The HSI saw its worst quarter since 2011, with a 21.2%
** Asian shares experienced the worst month since the onset
of the COVID-19 pandemic, while jitters in currency and bond
** "Investor sentiment has not recovered and stayed at a YTD
(year to date) through this week, mainly driven by the Fed's
continuous hawkish stance on rate hikes, the ongoing COVID
clusters, as well as the depreciation of CNY against USD,"
Morgan Stanley said in a note.
** China's factory activity eked out growth in September,
but a slowdown in service sector growth and a downbeat private
manufacturing survey pointed to further cooling as the economy
grapples with COVID curbs and softening export demand.
** Travel during the National Day golden week holiday, which
begins on Saturday, is set to slump to its lowest in years,
analysts say, as COVID concerns spur calls for people to avoid
** Consumer discretionary and tourism-related
companies lost roughly 2% each, while new energy
stocks declined 3.2%.
** China's central bank made the biggest weekly liquidity
injection on a net basis through short-term bond instruments in
more than 32 months.
** Real estate developers jumped 3.8%, after
the central bank said local governments may relax the floor on
mortgage rates for first-time home buyers.
** The yuan gave up all the losses it booked this week,
after Reuters reported that China's major state-owned banks were
told to get ready to prop up the currency in offshore trades.
(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)