SHANGHAI, Nov 29 (Reuters) - China shares slipped on Monday
as concerns lingered about the newly discovered and possibly
vaccine-resistant coronavirus variant, while Meituan and
gambling stocks dragged Hong Kong equities lower.
The CSI300 index fell 0.2% to 4,852.46 by the end
of the morning session, while the Shanghai Composite Index
was unchanged at 3,562.70.
The Hang Seng index dropped 0.5% to 23,956.43. The
Hong Kong China Enterprises Index lost 0.3% to 8,550.13.
** The Omicron coronavirus variant has spread around the
world even as more countries imposed travel restrictions to try
to seal themselves off.
** Guosheng Securities said the new variant has become an
uncertainty for markets and investors should remain cautious in
the short term and wait for the other shoe to drop.
** Zheshang Securities said the new variant would have
limited impact on A shares due to China's strict anti-virus
** Tourism stocks slumped 2.8% due to a
resurgence of COVID-19 infections in China and the new variant.
** Real estate developers and energy shares
dropped more than 1.2% each.
** COVID-19-related healthcare stocks rose, jumping as much
as 15%, with some companies saying their test kits remained
effective for the new variant.
** The new energy sub-index and the defence
sub-index gained 1.8% and 2.7%, respectively.
** Profits at China's industrial firms grew at a faster pace
in October, providing a buffer for a faltering economy battered
by soaring raw material prices.
** In Hong Kong, food delivery giant Meituan
slumped nearly 8%, dragging down the Hang Seng Index 169
** Meituan plunged the most in four months after it forecast
a weaker outlook following its largest-ever quarterly loss in
** "We believe the short-term impact of the pandemic as well
as macro-headwinds does not alter the secular momentum of food
delivery," said Jefferies.
** Gambling stocks listed in Hong Kong tumbled
nearly 8% after Macau police said on Sunday they had arrested 11
people in an investigation into an illegal gambling and
(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)