China Stocks extend losses ahead of US tariff on Chinese goods

Headline shares of the Mainland China equity market were lower on Thursday, 05 July 2018, as risk aversion selloff on cautious ahead of steep US tariffs on tens of billions in Chinese goods are due to take effect at midnight Thursday. Chinese currency and equity markets have been volatile ahead of July 6, when U.S. tariffs on US$34 billion worth of Chinese goods are set to kick in. Around afternoon trade, the benchmark Shanghai Composite Index declined 0.9%, or 24.36 points, to 2,734.77, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.1%, or 17.42 points, to 1,545.58. The blue-chip CSI300 index slipped 0.6%, or 19.78 points, to 3,343.97.

China markets have taken a hit ahead of the Friday deadline, with the benchmark Shanghai composite last week falling into bear market territory, referring to a drop of at least 20% from recent highs.

 

The United States is due to impose the tariffs on US$34 billion worth of Chinese goods on July 6. China's customs department informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.

Powered by Capital Market - Live News