The Mainland China equity market closed down for second straight session on Thursday, 04 July 2019, as investors risk sentiments muted to see further progress around Sino-US trade talks despite a temporary trade truce with the U. S. reached last week at the G20 summit. At closing bell, the benchmark Shanghai Composite Index declined by 0.33%, or 10.01 points, to 3,005.25. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.55%, or 8.78 points, to 1,591.24. The blue-chip CSI300 index shed 0.52%, or 20.43 points, to 3,873.10.
Caution remained as market participants kept an eye on the progress of Sino-US trade talks. Top representatives from the United States and China are arranging to resume talks next week to try to resolve a year-long trade war between the world's two largest economies, Trump administration officials said on Wednesday. White House economic adviser Larry Kudlow said Wednesday that face-to-face negotiations between the U.
S. and China would begin soon.
Investors are watching for developments as the two economic powerhouses remain locked in a trade fight, with Kudlow's comments coming days after U. S. President Donald Trump and Chinese President Xi Jinping agreed not to impose new tariffs on each other's goods.
Shares of consumer firms were lower. China International Travel Service Corp slumped 5.5 per cent, while Guangdong Haid Group Co dived 6.4 per cent.
Seazen Holdings (601155 CH), the Shanghai-listed arm of Future Land Holdings, lost the daily limit of 10 per cent, after news its chairman Wang Zhenhua has been put under criminal detention.
CURRENCY NEWS: China yuan edged up against greenback on Thursday, on news that U. S. and Chinese officials will resume trade talks next week to try to resolve a year-long trade war. Prior to the market opening on Thursday, the People's Bank of China (PBOC) set the midpoint rate at 6.8705 per dollar, 65 bps or 0.09% weaker than the previous fix of 6.8640. In the spot market, onshore yuan opened at 6.8750 per dollar and was changing hands at 6.8710 at late afternoon, 105 bps stronger the previous late session close.
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