China Market falls 0.61% on Sino-US tension

The Mainland China equity market closed down on Friday, 29 November 2019, as risk aversion selloff triggered amid mounting concerns about growing tension between Beijing and Washington after new US law backing Hong Kong protesters. At closing bell, the benchmark Shanghai Composite Index declined 0.61%, or 17.71 points, to 2,897.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, shed 0.3%, or 4.74 points, to 1,593.10. The blue-chip CSI300 index dropped 0.87%, or 33.63 points, to 3,828.67.

Shanghai markets commenced trading with weak note due to uncertainty over the potential impact on ongoing trade negotiations between Washington and Beijing after the signing of bills by U.S. President Donald Trump in support of Hong Kong protesters on Wednesday. China strongly condemned the actions of the U.S., with the country's Ministry of Foreign Affairs saying on Thursday that Washington had sinister intentions. Hong Kong has been rocked by months of civil unrest initially sparked by a since-withdrawn extradition bill.

That comes as an anticipated phase one trade deal between the U.S. and China remains elusive ahead of Dec. 15, when additional tariffs on Chinese exports to the U.S. are set to go into effect.

Drug makers fell after the result of negotiations between the government and pharmaceuticals showed more than 50 per cent drops in prices of the medicines that will join the national medical insurance coverage.

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