Chinese stocks fall on hawkish Fed and US regulatory concerns

SHANGHAI — Chinese stocks ended lower on Friday, weighed down by concerns over hawkish comments from senior Federal Reserve officials and delisting risks from the United States for Chinese companies.

The blue-chip CSI300 index fell 1.8% to 4,174.57, while the Shanghai Composite index lost 1.2% to 3,212.24.

For the week, the CSI300 index was down 2.1%, while the Shanghai Composite index was down 1.2%.

The US public company accounting regulator said on Thursday it was continuing to engage with Chinese regulators to gain access to their auditors’ records, but it was unclear whether the Chinese government would grant the access required by a new US listing law.

China’s securities regulator said earlier this month it was confident it would reach an agreement with its US counterparts on securities supervision, after US-listed Chinese stocks fell when first potentially delisted Chinese companies have been named.

Last week, Chinese Vice Premier Liu He said Beijing would roll out support for the domestic economy and financial market, boosting Chinese and Hong Kong stocks initially.

Following the speech, “some actions have been taken by different agencies but the market is still waiting for more concrete actions in monetary, ADR, real estate, big tech, etc.,” Citi analysts said in a note.

China has reported 1,366 confirmed coronavirus cases and 3,622 asymptomatic cases for March 24.

Shares in healthcare, new energy and machinery closed between 3% and 3.4%.

While consumer staples lost 1.7%, tourism stocks fell 2% and transportation companies fell 2.7%.

The Chicago Fed chairman said on Thursday that the Fed must raise interest rates “in a timely manner” this year and in 2023 to rein in high inflation before it becomes embedded in American psychology and becomes even more difficult to eliminate.

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