RIYADH: Chinese blue chips inched lower on Tuesday, as investors worried that recent support measures were not enough to turn around the country’s beleaguered property sector, while rising COVID-19 cases and extended power curbs also dented sentiment.
The CSI300 Index had slipped 0.2 percent by the end of the morning session, while the Shanghai Composite Index .SSEC was up 0.2 percent after dropping as much as 0.5 percent.
The Hang Seng Index declined 0.5 percent, and the Hang Seng China Enterprises Index lost 0.4 percent.
Real estate developers lost 1.4 percent, after closing almost flat in the previous session, even as China cut its benchmark lending rate and lowered the mortgage reference.
Yuan extends loss
The yuan weakened to a two-year low against a resurgent dollar on Tuesday as Beijing’s steps to easy policies to revive faltering growth and the Federal Reserve’s relentless tightening streak kept pressure on the Chinese currency.
The onshore yuan extended its recent decline in morning trade, touching 6.8552 per dollar, the weakest level against the greenback since September 2020. At midday, the yuan was changing hands at 6.8508.
The yuan has weakened nearly 2 percent against the dollar since Aug. 15, when China’s central bank unexpectedly reduced two key policy rates to shore up a struggling economy.
China’s aviation regulator sets up goals for drone industry
China’s civil aviation regulator on Monday proposed a roadmap for development of its civilian drone industry, saying it wanted to boost their use in inner-city logistics and eventually for long-haul goods transport.
The proposed plan by the Civil Aviation Administration of China detailed various targets the regulator wanted its unmanned aerial vehicle (UAV) industry to reach by the years 2025, 2030 and 2035, including improving regulations and expanding airspace capacity for civilian UAVs.
Several companies in China have for years explored the use of drones or box-like robots on wheels to deliver parcels but widespread adoption has been slow amid regulatory hurdles and heavy reliance on human couriers.
The goal is to “enhance China’s international competitiveness in the field of unmanned aviation as well as the country’s right to speak on international civil aviation rules and standards...and reach the goal of becoming a global civil aviation power,” it said.
The CAAC said its plan was open to public comment until Sept. 5.
(With input from Reuters)