Chinese stocks declined at the end of Monday trading session as the investors’ sentiment was clouded by warnings from politicians about economic bubbles and the uncertainty surrounding the US presidential election.
The CSI300 Index, which tracks the value of securities of the largest companies traded in Shanghai and Shenzhen, fell 0.1% to 3.336,28 points. The index of the Shanghai Stock Exchange – Shanghai Composite lost 0.1% and closed trading at around 3.100,49 points.
Over the past month, CSI index rose 2.6%, and SSEC gained 3.2%.
China should "adhere to prudent monetary policy and maintain sufficient liquidity, focusing on controlling market bubbles of assets and the prevention of economic and financial risks," - said the President of China, Xi Jinping, at a meeting of the Politburo, the highest decision-making body of the ruling Communist Party.
Fears among investors are also caused by the information that the FBI resumed its investigation of Hillary Clinton’s e-mail leak ten days before the election in the United States, which have pushed up safe-havens, in particular, shares of gold miners.
The leading Hong Kong stock index was almost unchanged at the end of today's trading, but lost 1.6% in October, breaking a three-month winning streak. This suggests that the observed from February rally loses speed.
Hang Seng Index fell 0.1% to 22.934,54 points. The index of Chinese companies traded in Hong Kong, rose 0.5%, closing at 9.559,39 points.
The investors’ risk appetite is limited by the expectations a rate increase by Fed in December and the increasing uncertainty surrounding the US presidential election.
Sentiment in Hong Kong also deteriorated because of the almost 5% fall in the shares of the AIA Group index.
However, the weakness of the financial sector shares is offset by the restoration of the securities of telecommunications companies and companies engaged in real estate.