Left Menu
Development News Edition

China, HK stocks fall as escalating tensions cloud Sino-U.S. trade talks

Reuters | Hong Kong | Updated: 09-10-2019 10:03 IST | Created: 09-10-2019 10:02 IST
China, HK stocks fall as escalating tensions cloud Sino-U.S. trade talks
Image Credit: Pixabay

China and Hong Kong stocks fell in early trade on Wednesday, as escalating trade and political tensions between Beijing and Washington a day ahead of high-level negotiations soured risk sentiment. China's blue-chip CSI300 Index lost 0.3% to 3,825.39 by the lunch break. The Shanghai Composite Index fell 0.1% to 2,909.53.

Hong Kong's benchmark Hang Seng Index fell 0.7% to 25,716.77. The Hang Seng China Enterprises Index lost 0.1% to 10,189.05. Asian stocks fell the most in a week as U.S. visa restrictions on Chinese officials and the addition of more Chinese companies to a U.S. trade blacklist weighed on already slim hopes that Washington and Beijing could reach a truce at trade negotiations this week.

The U.S. State Department announced the visa restrictions just a day after the U.S. Commerce Department cited the mistreatment of Uighur Muslims in China in its decision to add 20 Chinese public security bureaus and eight companies to a trade blacklist. Washington is also moving ahead with discussions about restrictions on capital flows into China, Bloomberg reported.

"Chinese equities remained in the moderately bearish territory in the morning session impacted by the deteriorating situation in the trade negotiations," wrote Gerry Alfonso, an analyst at Shenwan Hongyuan Securities. "Recent developments in the trade front, such as the blacklisting of some companies or the potential restrictions on investments, are having an impact on the equity market."

Technology, consumer and healthcare stocks were among the biggest losers in China, while developers rose on the back of strong monthly property sales figures and speculation of some localized potential policy easing. September and October are typically the top months for property sales, so there is some seasonality embedded in the data, Alfonso said.

Also Read: Asian markets mostly up as traders look for China-US progress


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Cricket-NZ, Windies players pass final COVID-19 tests

All of the New Zealand and West Indies players in isolation in Christchurch have tested negative for the novel coronavirus and are due to be released as scheduled on Thursday, a day ahead of their opening Twenty20 match in Auckland. About 2...

'America is back,' Biden says, as he dumps Trump's foreign policy approach

President-elect Joe Biden said on Tuesday the United States will be ready to lead again on the global stage, turning the page on President Donald Trumps America First policies as he pledged to work together with the nations allies. Introduc...

Pompeo says U.S. State Department transition process begun

U.S. Secretary of State Mike Pompeo on Tuesday indicated that the State Department has begun the transition process after the General Services Administration GSA, the federal agency that must sign off on presidential transitions, on Monday ...

As virus cases spike, financial outlook for world's airlines dims

With coronavirus cases spiking in the US and Europe, the financial outlook of the worlds airlines is getting worse. Airlines will lose more than USD 157 billion over this year and next because of the pandemic, their main trade group said on...

Give Feedback