4 Jan 2022

Chinese shares are headed for their worst start to the new year since 2019, as investors took profit on some of their most successful bets in 2021. 

The benchmark CSI 300 index dropped 1.3% on Tuesday morning, led by declines in once-popular renewable energy and healthcare firms, on track for its weakest opening session since the 1.4% decline three years ago. Both Trina Solar Co. and Asymchem Laboratories Tianjin Co. fell by the 10% daily trading limit. 

The Nasdaq-style ChiNext board in Shenzhen lost as much as 2.5%, weighed by battery maker Contemporary Amperex Technology Co.’s 4.2% loss. 

The losses came after Beijing said it will terminate the government’s subsidy policy for new-energy vehicle purchases from 2023. Investor mood also turned cautious after China’s central bank cut its net supply of funds to markets by the most in three months, a disappointment for investors hoping for more monetary easing. 

In Hong Kong, the Hang Seng Tech Index slid 1.2% after Beijing asked the nation’s large-size tech firms to apply for security checks before seeking overseas stock listings.