Chinese stocks retreat from key 3,000 level as early rally in 5G sector gives way to sell-off in hemp, insurance companies

Chinese stocks retreated again from a key level on Thursday as an early rally in stocks linked to 5G mobile technology gave way to a sharp sell-off in industrial hemp-related companies and insurers that had reported disappointing results.

The Shanghai Composite Index lost 0.9 per cent to 2,994.94, having held above the 3,000 threshold until the last 30 minutes of trading. The large-cap CSI 300 Index was down 0.4 per cent, and the Nasdaq-style Chinext Index shed 0.7 per cent.

In Hong Kong, the Hang Seng Index inched up by 0.2 per cent, as properties gained on rebounding home prices.

Traders were weighing how much momentum is still left in the Shanghai benchmark after stocks took off in late February, boosted by index compiler MSCI’s decision to increase the weighting of China shares in its global indices, and Beijing’s fiscal stimulus package.

The benchmark has hovered around the 3,000 level since then, unmoved by Chinese premier Li Keqiang’s vows to further open up to foreign businesses and fulfil promises of a large-scale tax and fee cut in his speech delivered at the Boao Forum in the southern island of Hainan.