The Mainland China equity market closed down on Wednesday, 26 June 2019, as risk sentiments subdued on caution ahead of presidents Donald Trump of the US and Xi Jinping of China expected meet on Saturday on the sidelines of the Group of 20 summit in Japan. At closing bell, the benchmark Shanghai Composite Index fell 0.2%, or 5.79 points, to 2,976.28. The Shenzhen Composite Index, which tracks stocks on China's second exchange, edged up 0.00%, or 0.05 point, to 1,560.51. The blue-chip CSI300 index dropped 0.18%, or 6.98 points, to 3,794.51.
Market participants are nervously looking toward developments on the U. S.-China trade front, with Presidents Donald Trump and Xi Jinping set to meet at the G-20 summit later this week. The two leaders are expected to discuss the protracted trade fight between their two countries.
China and the U. S. have already slapped tariffs on billions of dollars worth of each other's goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods.
The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U. S. if the two countries fail to arrive at a deal.
Market expectations for a meaningful breakthrough being achieved in U. S.-China trade talks are quite low, so any signs of an improvement could bode well for risk sentiment.
Financial stocks were major drag on the Shanghai Composite Index, as investors planned to dump shares in leading brokerage firms, whose stocks slumped as a result. Banking stocks also weakened, after a report said that some Chinese banks may face US action in N. Korean sanctions probe. China Merchants Bank (600036 CH) was down 1.83% at 35.47 yuan, and China Everbright Bank (601818 CH) fell 0.78%, at 3.83 yuan.
CSC Financial (601066 CH) plunged to the daily 10% lower limit, to 23.83 yuan, after it said in an exchange filing Tuesday that its fourth-largest shareholder, Citic Securities (600030 CH), plans to sell all of its holding of 427 million A shares, or a 5.58% stake, starting in July. Citic Securities was down 0.81% at 23.29 yuan.
First Capital Securities (002797 CH) ended 3.79% lower, at 6.35 yuan, after it divulged that its shareholder Nenking Group will reduce its stake in the brokerage by up to 3%, down from 8.49% currently.
CURRENCY NEWS: China yuan eased against greenback on Wednesday. Prior to market opening on Wednesday, the People's Bank of China (PBOC) set the yuan's midpoint rate at 6.8701 per dollar, 121 pips or 0.18% weaker than the previous fix of 6.858. In the spot market, onshore spot yuan was changing hands at 6.8895 per dollar, weaker by 0.16% than the previous day quote of 6.8786 per dollar.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)