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China Stocks up on hopes of U.S. tariff delay

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Mainland China equity market closed higher on Wednesday, 11 December 2019, as appetite for riskier assets underpinned on expectations that fresh U. S. tariffs on Chinese goods may be delayed, but gains were limited amid the lack of formal confirmation from Beijing and Washington. At closing bell, the benchmark Shanghai Composite Index was up 0.24%, or 7.10 points, to 2,924.42. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.44%, or 7.32 points, to 1,639.50. The blue-chip CSI300 index was marginally up by 0.06%, or 2.37 points, to 3,902.75.

The market broadly believes the United States will delay or cancel the tariffs but lingering uncertainty over that outcome could keep stock buying in check. Officials on both sides are laying the groundwork to push back a new round of U.

S. tariffs on Chinese imports set to come into effect on Dec. 15.

As per reports, Trump's advisers were making preparations for to postpone punitive duties on smartphones, laptop computers, toys and other goods, but White House economic advisor Larry Kudlow said tariffs were still on the table.

China and the U. S. have until Sunday to come strike a so-called phase one trade deal. If an agreement wasn't reached by then, new U. S. tariffs will take effect. Tariffs on another $156 billion in Chinese goods are set to go into effect on Dec. 15.

Changan Automobile jumped by the daily limit of 10% to 9.09 yuan, after reporting a 13% surge in November sales from the same period last year.

Electronics stocks weighed on the Shenzhen market, as investors took profits in wireless headset component suppliers. Earphone manufacturer Yingtong Telecommunication and Shenzhen Rapoo Technology, a maker of wireless peripheral equipment, plunged by the daily 10% limit.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 11 2019. 20:56 IST