China Stocks fall on Sino-US tensions

The Mainland China share market finished session lower on Wednesday, 19 May 2021, as investors booked profit made in recent sessions amid increased tensions between Beijing and Washington after a U.S. warship sailed through the sensitive waterway that separates Taiwan from China.

At closing bell, the benchmark Shanghai Composite Index was up 0.32%, or 11.40 points, to 3,529.01. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.17%, or 3.94 points, to 2,324.27. The blue-chip CSI300 index climbed up 0.06%, or 2.61 points, to 5,187.60.

China has accused the United States of threatening the peace and stability of the Taiwan after a U.S. warship sailed through the sensitive waterway that separates Taiwan from China.

U.S. House of Representatives Speaker Nancy Pelosi on Tuesday called for a diplomatic boycott of the 2022 Winter Olympics in Beijing, criticising China for human rights abuses.

Shares of energy and materials companies declined after prices of crude, aluminium and copper fell from their highs in recent trading. China Oilfield Services fell 4.9 per cent to 15.35 yuan while China Coal Energy lost 5.7 per cent to 7.40 yuan. Aluminium Company of China fell 3.1 per cent to 5.28 yuan..

CURRENCY NEWS: China yuan softened against the dollar on Wednesday, despite stronger mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) fixed the midpoint rate CNY=PBOC at 6.4255 per dollar, 0.16% stronger than the previous fix of 6.4357. In the spot market, the onshore market CNY=CFXS was changing hands at 6.4278, softer by 0.04% than the previous late session close.

Powered by Capital Market - Live News