China Market falls 0.71%

The Mainland China equity market closed lower on Friday, 09 August 2019, as risk sentiments dampened amid fresh jitters about Sino-US trade ties after reports that US is delaying a decision about licenses for US firms to restart trade Huawei Technologies. Meanwhile selloff pressure intensified after data showed the China's producer prices fell for the first time in three years in July 2019. At closing bell, the benchmark Shanghai Composite Index declined 0.71%, or 19.80 points, to 2,774.75. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.3%, or 19.10 points, to 1,479.86. The blue-chip CSI300 index sank 1%, or 35.76 points, to 3,633.53.

China's consumer price index in July rose 2.8% on-year its fastest year-on-year pace since February 2018, according to data from the National Bureau of Statistics. In particular, food prices soared in July to 9.1% from a year ago, amid surging prices of pork as the country battles African swine fever. The producer price index for that period fell more than expected. It declined 0.3% year-on-year in July.

 

Shares of telecoms equipment makers fell, on renewed concerns the ongoing US-China trade war will further hurt business. The US is said to have shelved a decision allowing American companies to restart business with Huawei Technologies, as Beijing and Washington ramped up retaliatory measures amid a flare-up in their trade war. ZTE, China's second-largest phone equipment makers after Huawei, sank 7.7 per cent to 27.90 yuan. Eastcompeace Technology (002017 CH) slid 8.1 per cent to 11.30 yuan and Datang Telecom Technology (600198 CH) shed 4.7 per cent to 10.13 yuan.

CURRENCY NEWS: The People's Bank of China's fixed its midpoint for the yuan at 7.0136 against the dollar on Friday the second time this week the benchmark rate was set weaker than 7. The onshore yuan last traded at 7.0489 against the greenback, and the offshore yuan changed hands at 7.0762 per dollar.

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