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China stock market falls on Tuesday after new US China tariffs on Monday

Devdiscourse News Desk
Updated: 25-09-2018 13:22 IST
China stock market falls on Tuesday after new US China tariffs on Monday

China's stock markets fell on Tuesday, their first trading day after new U.S. and Chinese tariffs on each other's goods kicked in on Monday, while property firms plunged on worries that a property pre-sale system may be scrapped.

At the close, the Shanghai Composite index was down 16.35 points or 0.6 percent at 2,797.48. Stock markets in China were closed on Monday for a holiday.

The blue-chip CSI300 index ended 0.9 percent lower, with its financial sector sub-index falling 1.44 percent. The consumer staples sector fell 0.95 percent while the healthcare sub-index rose 0.11 percent.

Shares of Chinese property developers plunged, with the real estate sub-index losing 4.4 percent after six provinces were told to decide whether to retain or scrap a property pre-sale system that enables developers to secure funds before project completion. Property shares had fallen sharply in Hong Kong on Monday on the prospect of the system being scrapped.

The United States and China imposed fresh tariffs on each other's goods on Monday as the world's biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth. ** A senior Chinese official said on Tuesday that it is difficult to proceed with trade talks with the United States while Washington is putting "a knife to China's neck", a day after both sides heaped fresh tariffs on each other's goods.

** Chinese airlines slumped on worries over higher oil prices amid reluctance by the Organization of the Petroleum Exporting Countries to raise output to offset Iran sanctions. The index tracking major transport firms ended 1.2 percent lower.

The smaller Shenzhen index ended down 0.54 percent and the start-up board ChiNext Composite index was weaker by 0.38 percent.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.07 percent while Japan's Nikkei index closed 0.29 percent higher.

At 07:02 GMT, the yuan was quoted at 6.8634 per U.S. dollar, 0.05 percent weaker than the previous close of 6.86.

The largest percentage gainers in the main Shanghai Composite index were Guanghui Logistics Co Ltd, up 10.1 percent, followed by Ningbo Heli Mould Technology Co Ltd, up 10.03 percent and China Grand Automotive Services Co Ltd, up 10.02 percent.

The largest percentage losers in the Shanghai index were HNA Technology Co Ltd, down 10.04 percent, followed by HNA Technology Co Ltd, down 10.02 percent and A-Zenith Home Furnishings Co Ltd, down 10.01 percent.

HNA Technology shares hit their lowest level since July 20, 2017, after the company said it scrapped a plan to buy Beijing-based Dangdang and a related e-commerce firm.

So far this year, the Shanghai stock index is down 15.9 percent and the CSI300 has fallen 16.2 percent. Shanghai stocks have risen 2.05 percent this month.

About 11.20 billion shares were traded on the Shanghai exchange, roughly 101.5 percent of the market's 30-day moving average of 11.03 billion shares a day.

The Shanghai stock index is above its 50-day moving average and below its 200-day moving average.

The price-to-earnings ratio of the Shanghai index was 11.83 as of the last full trading day, while the dividend yield was 2.7 percent.

COUNTRY : ChinaUnited States