China Market falls on mixed U.S.-China trade signals

The Mainland China equity market closed lower on Thursday, 21 November 2019, on rising concerns for the outlook of a near-term trade deal between China and the United States, with a fresh row over U.S. legislation on Hong Kong potentially complicating their negotiations. . However, market losses capped after reports that China and the US announced they'd reached a phase one trade deal. At closing bell, the benchmark Shanghai Composite Index declined 0.25%, or 7.41 points, to 2,903.64. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was down 0.24%, or 3.92 points, to 1,631.24. The blue-chip CSI300 index dropped 0.47%, or 18.26 points, to 3,889.60.

Market participants commenced trading in a back foot on concerns a preliminary trade deal between Washington and Beijing may not be completed this year as negotiators continue to wrestle over differences. Beijing is pressing Washington to agree to broader tariff rollbacks on Chinese goods and the Trump administration counters with heightened demands of its own. Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs on about $160 billion in Chinese imports somewhat undermined sentiment.

 

Adding to the tensions between the world's two biggest economies, the US House of Representatives on Wednesday passed legislation intended to support protesters in Hong Kong and send a warning to China about human rights.

CURRENCY NEWS: China's yuan eased against greenback on Thursday, as central bank set softer mid-point fixing. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at its weakest since Nov. 5 at 7.0217. The onshore yuan CNY=CFXS was relatively flat at 7.0385 versus its close at 7.0364 on Wednesday. The offshore yuan CNH=D3 was also little changed at 7.0405.

Powered by Capital Market - Live News