China Market gains 1.8%

The Mainland China equity market inclined on Thursday, 09 August 2018, as investors continued hunting heavily battered stocks after the benchmark index fell to the lowest level in two and a half years early this week. Market gains were, however, capped amid intensifying trade tussle between world's two biggest economies after China threatened to impose tariffs on US$16 billion-worth of US goods in the latest tit-for-tat exchange in their trade row. Around afternoon, the benchmark Shanghai Composite Index surged 1.8%, or 49 points, to 2,793.04, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.7%, or 39.16 points, to 1,505.86. The blue-chip CSI300 index added 2.4%, or 80.70 points, to 3,395.21.

NEWS FROM PRESS: China announced a plan to slap additional tariffs on $16 billion US goods in retaliation the Commerce Ministry said on Wednesday, 08 July 2018 that government will impose additional import tariffs of 25% on US$16 billion worth of U.S. goods ranging from oil and steel products to autos and medical equipment starting Aug. 23. The Commerce Ministry said it is responding to the United States' decision to slap 25-percent tariffs on another US$16 billion of Chinese goods Aug. 23. The U.S. Trade Representative's office made the announcement Tuesday as it published a final tariff list targeting 279 imported product lines. The action is the latest by U.S. President Donald Trump to put pressure on China to negotiate trade concessions after imposing tariffs on US$34 billion in goods last month. China has vowed to retaliate to an equal degree. The latest US$16 billion list will hit semiconductors from China, even though many of the basic chips in these products originate from the United States, or South Korea. The 25-percent tariffs also will apply to a broad range of Chinese electronics, plastics, chemicals and railway equipment that the Office of the U.S. Trade Representative (USTR) has said benefit from the Made in China 2025 industrial plan, aimed at making China competitive in high-tech industries.

China FX Reserves rises in July -- China's foreign exchange reserves increased for a second consecutive month in July on asset prices changes, according to a statement by the People's Bank of China (PBOC) Tuesday. -FX reserves rose by $5.82 billion to $3.12 trillion as of July 30, compared with an increase of $1.51 billion in June. The State Administration of Foreign Exchange, a division of the PBOC, said the higher value of China's FX reserve in U.S. dollar terms was due to non-dollar currency depreciation against the greenback and changed asset prices.

ECONOMIC NEWS: China Consumer Prices Climb 2.1% In July -- China consumer prices were up 2.1% on year in July, the National Bureau of Statistics said on Thursday and was up from 1.9% in June. On a monthly basis, CPI added 0.3% after easing 0.1% in June.

CURRENCY NEWS: The central parity rate of the Chinese currency renminbi, or the yuan, weakened 4 basis points to 6.8317 against the U.S. dollar Thursday, according to the China Foreign Exchange Trade System. The yuan has weakened almost 5% so far this year and hit a 14-month low last week, primarily driven by new tariff threats from the U.S. and retaliatory warnings from Chinese authorities.

Powered by Capital Market - Live News