China Market ends in the red

The Mainland China equity market closed in the red on Wednesday, 28 August 2019, as concerns over new wave of US tariffs on China goods, which take effect September 1 and October 1, with losses in banks and financials overshadowed gains in auto stocks after State Council told local governments to take steps to help the struggling auto industry. At closing bell, the benchmark Shanghai Composite Index declined 0.3%, or 8.44 points, to 2,893.76. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.13%, or 2 points, to 1,593.82. The blue-chip CSI300 index dropped 0.4%, or 14.37 points, to 3,802.58.

Shares of banks and financials closed down. Industrial Bank (601166 CH) was down 5% at 17.36 yuan. Ping An Insurance (601318 CH) was down 0.9% at 86.9 yuan, while China Life Insurance (601628 CH) fell 1.8% at 29.02 yuan.

Chinese auto companies rallied, after the State Council told local governments that have restrictions on auto sales to gradually relax or remove them. The State Council also said they should encourage purchases of new energy vehicles by providing active support. Investors continue to bet Beijing will offer more stimulus measures to boost consumption amid the ongoing trade war with the US. Lifan Industry (601777 CH) locked 10% upper circuit at 4.33 yuan and Hualing Xingma Automobile (600375 CH), locked 10% upper circuit at 5.46 yuan. Great Wall Motor (601633 CH) rose 2.3% to 8.55 yuan. SAIC Motor (600104 CH) rose 0.5% to 25.08 yuan.

Shares of pork-related producers surged after data from the Ministry of Agriculture and Rural Affairs showed the price of lean meat white pork was up 30% at 32.61 yuan per kilogram past week from sequentially previous month and up 74% from a year ago. Luoniushan (000735 CH), Beijing Dabeinong Tech (002385 CH), and Jiangxi Zhengbang Tech (002157 CH all locked at 10% upper circuit. Hunan Dakang International Food & Agriculture (002505 CH) rose 7.6% to 2.26 yuan, Shandong Longda Meat Foodstuff (002726 CH) rose 7.5% to 9.71 yuan, and Tech-Bank Food (002124 CH) rose 7.1% to 13.02 yuan.

CURRENCY NEWS: China yuan declined against greenback on Wednesday, after softer mid-point fixing by central bank. Prior to market opening, the PBOC lowered its official yuan midpoint to 7.0835 per dollar, 25 bps weaker than the previous fix of 7.0810 and the weakest since March 18, 2008. Onshore spot yuan wrapped at 7.1635 per dollar, 10 bps weaker than the previous late session close of 7.1625. The offshore yuan was trading at 7.1704 per dollar.

Powered by Capital Market - Live News