World News | Markets Slip on Disappointing Chinese Trade Figures: Report

Hong Kong, May 12 (ANI): Hong Kong and Chinese shares fell on Tuesday on account of China's disappointing trade figures in April, The Standard reported.

China's imports contracted 7.9 per cent in April while exports rose at a slower pace of 5.8 per cent, official data showed, reinforcing signs of feeble domestic demand despite the lifting of Covid curbs.

Also Read | Al-Qadir Trust Corruption Case: Islamabad High Court Grants Two-Week Bail to Former Pakistan PM Imran Khan.

China's exports to the US fell more than 14 per cent in the first four months while the country's imports from the world's largest economy also dropped 2 per cent during the period, The Standard reported.

Government officials have repeatedly warned of a "severe" and "complicated" external environment in the wake of mounting recession risks for many of China's key trading partners.

Also Read | China To Send Special Envoy to Ukraine, Russia as Part of Peace Efforts.

This came as the city's benchmark the Hang Seng Index dropped 429 points to close at 19,867 on Tuesday while the Shanghai Composite Index lost 1.1 per cent on concerns over China's economic recovery due to slower exports.

The Hang Seng Tech Index slid three per cent, with Tencent (0700) dipping 3.6 per cent.

Chinese state-owned lenders retreated after a surge on Monday. China Construction Bank (0939) fell 1.1 per cent while Bank of China (3988) lost 1.5 per cent, The Standard reported.

BYD (1211) went down one per cent after Warren Buffet's Berkshire Hathaway further reduced its stake in the automaker.

Meanwhile, BYD's proposed acquisition of insurer Yian P&C Insurance has earned approval from Chinese regulators.

BYD will fully take over Yian P&C Insurance, which was among nine firms Chinese regulators seized from the Tomorrow Holdings conglomerate in July 2020.

Artificial intelligence company SenseTime (0020) extended its decline to close at a three-month low of HKD 2.27 after the news that the company was not able to be included in an MSCI index, The Standard reported.

Separately, Suzano, the biggest producer of hardwood pulp, said it is considering selling its products to China priced in yuan, adding to signs that the USD is losing its dominance in commodity markets.

China's currency is growing in importance and smaller customers there are requiring deals linked to the yuan, Suzano chief executive Walter Schalka said in an interview.

China is the largest commodity buyer and accounts for 43 per cent of Suzano's pulp.

In money markets, the onshore yuan fell 109 basis points to a week low of 6.9275 against the US dollar. (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)