China: Stocks extend losses ahead of wave of US-China tariffs

Headline shares of the Mainland China equity market were lower in choppy trade on Friday, 06 July 2018, as investors were concerns over the negative implications of the US set to impose tariffs on Chinese imports later in global day that many investors fear might trigger a full-scale trade war in a blow to the global economy. Chinese currency and equity markets have been volatile ahead of July 6, when U.S. tariffs on US$34 billion worth of Chinese goods are set to kick in. Around afternoon, the benchmark Shanghai Composite Index declined 0.34%, or 9.18 points, to 2,724.39, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.04%, or 0.57 points, to 1,528.10. The blue-chip CSI300 index slipped 0.12%, or 3.97 points, to 3,338.47.

Chinese equity markets have taken a knock in recent weeks, with the benchmark Shanghai composite wallowing in bear market territory since last week.

The United States is due to impose the tariffs on US$34 billion worth of Chinese goods on July 6. China's Ministry of Commerce informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. Ministry of Commerce spokesman Gao Feng made the remarks at a press conference when asked if China will slap new tariffs on some U.S. goods after the U.S. implements tariffs on Chinese imports worth US$34 billion Friday. He said about 59 percent of the US$34 billion imports subject to U.S. tariffs are produced by foreign-invested enterprises in China.

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