China CSI300 Falls 1.6% as Rate Hike Fears Tighten Stock Markets
Stocks in China and Hong Kong dropped on Friday due to concerns over rising U.S. interest rates and declining market liquidity.
China's blue-chip CSI300 index fell 1.6% by the lunch break, while the Shanghai Composite Index dropped 1.8% below the 3,900-point level. In Hong Kong, the benchmark Hang Seng Index declined nearly 1% to end the week down 3.5%. The selling pressure was driven by weak sentiment and thin trading volumes across mainland equities. Market participants booked profits from an earlier artificial intelligence rally, leaving investors cautious about valuations. Daily turnover in onshore markets hovered near its lowest level of the year. Non-ferrous metal stocks led the declines in mainland regions, with some dropping more than 6%. The technology-heavy STAR50 index fell 3%, hitting its lowest point since late April. In contrast, PetroChina rose 1.2% as oil stocks gained momentum.
