China In-Focus — Stocks end lower; Toyota suspends operations at Sichuan plant

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RIYADH: China’s blue-chip index edged lower on Tuesday on worries about COVID-19 flare-ups and slowing economic growth, although property stocks jumped on news of policy support.

The blue-chip CSI300 index fell 0.2 percent, while the Shanghai Composite Index .SSEC gained 0.1 percent.

The Hang Seng index fell 1.1 percent, while the China Enterprises Index lost 1.3 percent.

Toyota suspends operations

Toyota Motor Corp. suspended operations at its Sichuan plant in China because of a power shortage, the Kyodo News reported on Tuesday.

The local authority has ordered the automaker to suspend operations, the report said.

Tsingshan mulls selling Indonesian assets

China’s stainless steel and nickel giant, Tsingshan Holding Group is considering selling some of its assets in Indonesia to China Baowu Steel Group, the world’s top steel producer, sources said.

Tsingshan has in recent years been investing heavily in Indonesia, turning the nickel-rich Southeast Asian nation into a hub of stainless steel and nickel production, and a possible top supplier of electric vehicle battery chemicals.

“(It’s) still under discussion,” a Tsingshan official said, referring to the possible sale, without elaborating.

Two other sources at Baowu confirmed the talks, with one saying that the acquisition would be part of the Chinese state-controlled steel firm’s long-term goal to expand in the stainless steel sector, especially in Southeast Asia.

It would also be in Baowu’s interests to expand into nickel, most of which is used in making stainless steel.

“Our layout in the nickel industry is quite limited, and it is now too late to buy resources and invest a large amount of money to build factories,” said a second source at Baowu.

(With input from Reuters)