China Stocks falls on talks of US trade tariffs

Mainland China share market finished session slightly in negative territory on Tuesday, 14 May 2024, as investors sentiments weighed down by news of fresh U.S. tariffs and China's weak credit growth data for April.

Market sentiments dented on reports stating U.S. President Joe Biden is set to announce new China tariffs as soon as this week targeting strategic sectors, including a major hike in levies on electric vehicles (EVs).

Also denting sentiment was central bank latest data showing Chinas aggregate financing, the broadest measure of credit supply, plunge by nearly 200 billion yuan in April from the preceding month.

At close of trade, the benchmark Shanghai Composite index was down 0.07%, or 2.25 points, to 3,145.77. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.35%, or 6.21 points, to 1,773. The blue-chip CSI300 index declined 0.21%, or 7.64 points, to 3,657.05.

CURRENCY NEWS: China's yuan eased against the dollar on Tuesday, as softer mid-point rate fixing by the central bank. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1053 per U.S. dollar, weaker than the previous fix 7.103. The onshore yuan opened at 7.2331 per dollar and was changing hands at 7.2376 at midday, 44 pips weaker than the previous late session close.

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