China, HK stocks extend fall on renewed US tariff threat

10-May-2019 Intellasia | Reuters | 6:00 AM Print This Post

China stocks continued to slide on Thursday, after US President Donald Trump vowed not to back down on imposing new tariffs on Chinese imports, but there was no panic selling, with Monday’s over 5 percent plunge largely pricing in the penalty. Hong Kong shares also declined.

** Fears of the rapidly escalating trade tensions were eased a bit by China inflation data suggesting demand may be starting to perk up thanks to Beijing’s stimulus.

** China’s blue-chip CSI300 index fell 1.9 percent, to 3,597.59 at the end of the morning session, while the Shanghai Composite Index lost 1.4 percent to 2,854.71. ** The Hang Seng index dropped 2.0 percent to 28,437.64, while the Hong Kong China Enterprises Index lost 1.9 percent to 10,883.26.

** Trump said on Wednesday China “broke the deal” it had reached in trade talks, and vowed to impose new tariffs on Chinese imports unless Beijing “stops cheating our workers.”

** The US Trade Representative’s office said tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent at 12:01 a.m. (0401) GMT on Friday. Beijing has announced it would retaliate if tariffs rise.

** “This sudden shift highlights the continued threat that US protectionism poses to the global economy despite the recent lull in aggressive action from the Trump,” Nomura said in a note. ** China’s CSI300 financial sector sub-index was lower by 1.85 percent, the consumer staples sector down 3.82 percent, the real estate index down 2.45 percent and the healthcare sub-index down 3.13 percent. ** The smaller Shenzhen index was down 1.03 percent and the start-up board ChiNext Composite index was weaker by 0.64 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.29 percent while Japan’s Nikkei index was down 1.10 percent. ** The yuan was quoted at 6.8075 per US dollar, 0.36 percent weaker than the previous close of 6.7831. ** The largest percentage gainers in the main Shanghai Composite index were Guangdong Dcenti Auto-Parts Stock Ltd Co, up 10.04 percent, followed by L&K Engineering Suzhou Co Ltd, gaining 10.03 percent and UE Furniture Co Ltd, up by 10.03 percent. ** The largest percentage losers in the Shanghai index were Kangmei Pharmaceutical Co Ltd, down 10.06 percent, followed by Wuhan Xianglong Power Industry Co Ltd, losing 10.03 percent and Jiang Su Suyan Jingshen Co Ltd, down by 10.02 percent.


Category: Hong Kong

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