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Chinese stocks fell for a fifth day as the benchmark gauge experienced its longest decline in almost two months, with the depreciation of the yuan at a year-low easing signs of slackening credit . fell 0.5% Thursday, dropping to 2.3% in five days. The series of declines was the longest since a six-day period ending May 30th. The Hang Seng Hong Kong index fell 0.4 percent to its lowest level in 10 months.
China Southern Airlines and other carriers fell to the lowest level in 12 months after the central bank lowered the benchmark rate in the context of intensifying trade with the United States. The Chinese currency fell 0.5% to 6.7514 against the US dollar on Thursday. 
Market losses have been limited by the call for more flexible credit from policy makers to foster economic growth. The regulator who oversees the banking and insurance sectors said in a statement on its website that large lenders should take the initiative to increase small business lending to reduce their financing costs. further policy flexibility at a time when growth is facing a downside risk in the context of trade war and financial deleveraging. According to Bloomberg data, the turnover rates in Shanghai and Shenzhen were at least 11% lower than the 30-day averages
"There are no new participants in this market because investors need to see more clearly what the government will do further to support the economy, "said Wang Zheng, investment director at Jingxi Investment Management in Shanghai. "The uncertainty of economic prospects and policies is still hanging on the market."
Uncertainty of economic prospects and policies are still hanging on the market
Wang Zheng, Jingxi investment management
China Southern Airlines slumped 5.3% to 6.81 yuan. Air China fell 5% to 7.37 yuan and China Eastern Airlines also lost 5% to 5.70 yuan. A weakening of the yuan will increase the repatriated values of the debts of the Chinese airlines, denominated in foreign currencies.
Two units of the HNA Group's indebted conglomerate plummeted as the shares resume trading after being suspended for six months, wiping out 10.7 billion yuan in market value. The HNA-Caissa Travel group fell 10 percent to 11.61 yuan to announce the end of its asset revaluation plan, while Bohai Capital Holding fell 10 percent to 4.27 yuan
. Focus Media's information technology jumped 10 percent a day to 10.93 yuan after three 100 percent owned units by Alibaba Group Holding bought 10.3 percent stake in the company's capital . In Hong Kong, the Hang Seng Index lost 106.56 points to 28,010.86, the lowest closing since September 29th. The Hang Seng China Enterprises index fell 0.5%
China Holdings was the worst performer on the benchmark, dropping 3.8 percent to 6.62 HK dollars. Geely Automobile Holdings lost 3.7 percent to 19.26 HK dollars and China Mengniu Dairy lost 3.6 percent to 25.30 HK dollars.
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