China shares fell on Tuesday, hit by consumer and “metaverse” stocks, as investors dumped riskier assets on worsening Ukraine crisis, while fears over a fresh round of regulatory crackdowns in the tech sector also weighed on sentiment.
At the close, the Shanghai Composite index .SSEC was down 0.96% at 3,457.15 and the blue-chip CSI300 index .CSI300 fell 1.3%.
Leading losses, the consumer staples sector .CSI000912 slumped 2.61% while the sub-sector index tracking comic, anime and gaming firms .CSI930901 lost 5.04%.
China’s ambassador to the United Nations called all parties concerned in the Ukraine crisis to exercise restraint and avoid any action that might fuel tensions, after Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent.
Investor worries over the potential for a fresh wave of regulatory crackdowns in China’s tech firms set off steep drops in shares including “metaverse” concept stocks and food delivery giant Meituan 3690.HK.
Chinese authorities have told state-owned firms and banks to start a fresh round of checks on their financial exposure and other links to Ant Group Co Ltd 688688.SS, Bloomberg News reported on Monday, citing people familiar with the matter.
Global investors dumped equities of Chinese A-share index heavy weights including Kweichow Moutai 600519.SS, the biggest drag on the blue-chip index.
Bucking a broader market slump, the CSI300 Energy index .CSI000908 and CN Resources index .CSI000944 gained 1.51% and 1.41%, respectively, while shares in most Chinese gold miners also jumped on higher oil and gold prices.
The smaller Shenzhen index .SZSC ended down 1.24% and the start-up board ChiNext Composite index .CNT was weaker by 1.379%.
Around the region, MSCI’s Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 1.6%, while Japan’s Nikkei index .N225 closed down 1.71%.
At 07:10, the yuan CNY=CFXS was quoted at 6.3415 per U.S. dollar, 0.1% weaker than the previous close of 6.3352.
