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China stock bounce short-lived as growth, trade worries resurface

Updated: 04-12-2018 10:11 IST
China and Hong Kong stocks lost steam on Tuesday morning after Monday's sharp rally triggered by the truce in the Sino-U.S. trade war, as investors come to terms with the fact that the relationship between the two countries hasn't improved, while China's economy continues to face downward pressure.

** Both the CSI300 index and the Shanghai Composite Index, which jumped almost 3 percent on Monday, ended Tuesday morning flat, at 3,259.55 points and 2,655.96 points, respectively. ** In Hong Kong, the Hang Seng index and the Hong Kong China Enterprises Index dipped 0.3 percent each, to 27,112.01 points, and 10,849.81 points, respectively.

** U.S. President Donald Trump and Chinese President Xi Jinping on Saturday agreed to a ceasefire, holding off on imposing more tariffs for 90 days starting Dec. 1 while they negotiate a deal to end the dispute following months of escalating tensions. Washington disclosed the 90-day truce period, but Beijing didn't mention it, nor did Chinese media.

** After studying the news release by the U.S. government, which carries more details, brokerage Zhongtai International said that "U.S. demand on China didn't actually change", but local media reports fanned optimism in China's stock market. In addition, "macro data shows China's economy still faces downward pressure," the brokerage said. ** China's CSI300 financial sector sub-index was lower by 0.12 percent, the consumer staples sector up 0.15 percent, the real estate index down 2.18 percent and the healthcare sub-index up 0.43 percent. ** Chinese H-shares listed in Hong Kong fell 0.3 percent at 10,849.81, while the Hang Seng Index was down 0.26 percent at 27,112.01. ** The smaller Shenzhen index was unchanged for the day and the start-up board ChiNext Composite index was unchanged. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.30 percent while Japan's Nikkei index was down 1.43 percent. ** The yuan was quoted at 6.8389 per U.S. dollar, 0.68 percent firmer than the previous close of 6.8855. ** The largest percentage gainers in the main Shanghai Composite index were Shenzhen Geoway Co Ltd, up 10.14 percent, followed by Shandong Hiking International Co Ltd, gaining 10.08 percent and Zhonglu Co Ltd, up by 9.99 percent. ** The largest percentage losses in the Shanghai index were Zhejiang Langdi Group Co Ltd, down 10 percent, followed by Xinjiang Winka Times Department Store Co Ltd , losing 6.74 percent and Wuhan Hanshang Group Co Ltd , down by 6.24 percent. ** The top gainers among H-shares were Haitong Securities Co Ltd , up 2.18 percent, followed by CSPC Pharmaceutical Group Ltd, gaining 1.24 percent and CITIC Securities Co Ltd, up by 1.18 percent. ** The three biggest H-shares percentage decliners were Anhui Conch Cement Co Ltd, which has fallen 3.66 percent, China Resources Land Ltd, which has lost 2.8 percent and China Petroleum & Chemical Corp, down by 2.2 percent.

(Reporting by Samuel Shen and John Ruwitch; Editing by Sunil Nair)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)