China Stocks falls after US trade tariffs

Mainland China share market finished session lower on Wednesday, 15 May 2024, amid signs of escalations in Sino-U.S. trade tensions after U.S. President Joe Biden's decision to levy fresh tariffs on Chinese goods.

Mainland China shares saw selloff after the Washington moved to increase levies on a range of Chinese imports, triggering a pledge from Beijing it would take necessary action.

U.S. President Biden on Tuesday unveiled steep tariff increases on an array of Chinese imports, including electric vehicle (EV) batteries, computer chips and medical products

At close of trade, the benchmark Shanghai Composite index was down 0.82%, or 25.87 points, to 3,119.90. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.76%, or 13.42 points, to 1,759.58. The blue-chip CSI300 index declined 0.85%, or 30.99 points, to 3,626.06.

Shares of property developer advanced after reports that China is considering a proposal to have local governments across the country buy millions of unsold homes,

CURRENCY NEWS: China's yuan edged up against the dollar on Wednesday, as firmer mid-point rate fixing by the central bank and reports of a possible plan to ease the country's housing glut. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1049 per dollar, 4 pips firmer than the previous fix of 7.1053. The onshore yuan opened at 7.2322 per dollar and was changing hands at 7.2280 at midday, 50 pips firmer than the previous late session close.

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