Shanghai stocks fall for 5th week as trade worries rise

1 BUSINESS

Business News - Opportunities - Reviews

 

 

* SSEC unchanged, CSI300 rises 0.3%

* China says U.S. needs to fix ‘wrong actions’ as Huawei ban rattles supply chains

* Trump says ‘dangerous’ Huawei could be included in U.S.-China trade deal

SHANGHAI, May 24 (Reuters) – Shanghai stocks ended nearly flat on Friday, but fell for the fifth straight week, amid worries of Sino-U.S. trade tensions morphing into a tech cold war.

** The blue-chip CSI300 index rose 0.3% to 3,593.91, while the Shanghai Composite Index was unchanged at 2,852.99.

** For the week, the CSI300 shed 1.5%, down for the third week, while the SSEC lost 1% to close lower for the fifth week in a row.

** U.S. President Donald Trump said on Thursday that Washington’s complaints against Huawei Technologies might be resolved within the framework of a U.S.-China trade deal, while calling the Chinese telecom giant “very dangerous.

** The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies against the dollar, another move that could slap higher tariffs on Chinese products.

** China said the United States needs to correct its “wrong actions” in order for trade talks to continue after it blacklisted Huawei, a blow that has rippled through global supply chains and battered technology shares.

** For the short term, the impact from the Sino-U.S. trade tensions is huge, given the unclear direction of the trade issue, and capital outflows could intensify if China’s yuan weakens as a result of tension escalation, Xu Peidong, analyst with BOC International (China) said.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.16%, while Japan’s Nikkei index closed down 0.16%.

** At 0716 GMT, the yuan was quoted at 6.9039 per U.S. dollar, 0.11% firmer than the previous close of 6.9116.

** The largest percentage gainers on the main Shanghai Composite index were Jiangsu Zijin Rural Commercial Bank Co Ltd , up 10.08%, followed by Huafang Co Ltd, gaining 10.07% and Jiangxi Guotai Group Co Ltd, up by 10.06%.

** The largest percentage losers on the Shanghai index were Zhangjiagang Freetrade Science & Technology Group Co Ltd down 10.05%, followed by Shanghai Fudan Forward S&T Co Ltd losing 10.02% and Fujian Start Group Co Ltd down by 9.99%.

** So far this year, the Shanghai stock index is up 14.4% and the CSI300 has risen 19.4%, while China’s H-share index listed in Hong Kong is up 3.2%. Shanghai stocks have declined 7.32% this month.

** As of 0717 GMT, China’s A-shares were trading at a premium of 25.67% over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply