SHANGHAI: China stocks ended Tuesday morning sharply lower, as disappointing China trade data and slumping oil prices unnerved investors already cautious ahead of an anticipated U.S. rate hike next week that could trigger more capital outflows.
China’s blue-chip CSI300 index fell 1.2 percent, to 3,642.32 points by lunch break, while the Shanghai Composite Index lost 1.3 percent, to 3,489.88 points.
In Hong Kong, the benchmark Hang Seng index dropped 1.7 percent, to 21,829.13 points, while the Hong Kong China Enterprises Index lost 2.3 percent.
“A confluence of bad news has deepened market pessimism,” said Alex Kwok, chief analyst and head of research at China Investment Securities (HK).
“Many investors stand on the sidelines, with little intention to go into the market.”
Data showed on Tuesday that China’s exports fell by a more-than-expected 6.8 percent in November from a year earlier, their fifth straight month of decline.
The data added to investor concerns, as during the same month, China’s foreign exchange reserves fell to their lowest level in nearly three years, with analysts blaming “record” capital outflows on expectations that the yuan will depreciate.
This adds pressure to a market facing a fresh wave of 10 initial public offerings this week that analysts estimate would freeze roughly 3 trillion yuan ($467.45 billion) of subscription funds.
