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Thursday, Jan 20, 2022

China shares end lower as chipmakers drag; post weekly gain

China shares end lower as chipmakers drag; post weekly gain

China shares closed lower on Friday as the country’s top chipmaker SMIC dragged semiconductor stocks.
**The blue-chip CSI300 index fell 0.6% to 4,945.98, while the Shanghai Composite Index slipped 0.2% to 3,516.30. For the week, the SSEC rose 1.68%, while the CSI300 edged up 0.5%.

** Chipmakers led the drop in China stocks, with the semiconductor sub-index falling 4.1%. The index has gained around 29% so far this year.

** SMIC slumped 6% after the Shanghai Stock Exchange said on Thursday it would remove the company from an index of eligible Shanghai stocks under the Shanghai-Hong Kong Stock Connect.

** The stock plunged 13.5% so far this week, on track for the biggest weekly pct decline since mid-September in 2020.

** Resources stocks, including steel and coal, resumed gains. The steel sub-index and the coal sub-index both gained 0.6%.

** The liquor sub-index was up 0.8%.

** Chinese battery giant CATL ended flat at 502 yuan per share, after having surged as much as 5.6% in morning trading.

** CATL said late on Thursday it was planning a private share placement to raise up to 58.2 billion yuan ($8.98 billion) to fund six projects aimed at boosting its production capacity of lithium-ion batteries.

** Citi said the expansions are much needed for CATL as the company is currently running at full capacity with very strong order book.

** “We expect the placement opens a window for investors to build positions,” Citi wrote in a note.

**The new energy vehicle sub-index finished down 0.9%, after going up 0.4% in morning trading.

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