China stocks have worst week in nearly five months
SHANGHAI: China stocks managed to end higher on Friday, but posted their worst weekly loss since early February, as lingering concerns over a potential full-blown trade war between China and the United States dampened investor sentiment.
The blue-chip CSI300 index closed up 0.5 percent at 3,608.90, while the Shanghai Composite Index gained 0.5 percent to 2,889.76 points after hitting a fresh two-year low in early trade.
For the week, SSEC tumbled 4.4 percent, while CSI300 slid 3.8 percent, both logging their worst week since early February.
There were few signs of easing in trade tensions between China and the United states.
U.S. Commerce Secretary Wilbur Ross said on Thursday the United States needs to make it harder for its trading partners to have high trade barriers in order to achieve President Donald Trump’s ultimate goal of lower tariffs and a level-playing field.
Stepping up its war of words with the United States, Chinese state media said U.S. protectionism is self-defeating and a “symptom of paranoid delusions” that must not distract China from its path to modernisation.
China’s commerce ministry on Thursday accused the United States of being ”capricious” over bilateral trade issues, and warned that the interests of U.S. workers and farmers would ultimately be hurt by Washington’s penchant for brandishing ”big sticks”.
While some investors still hope Washington and Beijing can work out a deal before July 6, when the first round of U.S. tariffs on Chinese goods as well as retaliatory tariffs by China are due to take effect, others see diminishing hopes of an early compromise.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.49 percent while Japan’s Nikkei index closed down 0.78 percent.
At 07:04 GMT, the yuan was quoted at 6.4949 per U.S. dollar, 0.01 percent weaker than the previous close of 6.494.
The largest percentage gainers in the main Shanghai Composite index were Aurora Optoelectronics Co Ltd up 10.14 percent, followed by Cultural Investment Holdings Co Ltd gaining 10.05 percent and Shenyang Jinbei Automotive Co Ltd up by 10.05 percent.
The largest percentage losses in the Shanghai index were Zhongzhu Healthcare Holding Co Ltd down 10.02 percent, followed by Fuda Alloy Materials Co Ltd losing 10.01 percent and Eastern Pioneer Driving School Co Ltd down by 10 percent.
So far this year, the Shanghai stock index is down 12.6 percent, the CSI300 has fallen 10.5 percent while China’s H-share index listed in Hong Kong is down 3 percent. Shanghai stocks have declined 6.64 percent this month.
About 12.61 billion shares were traded on the Shanghai exchange, roughly 93.3 percent of the market’s 30-day moving average of 13.51 billion shares a day. The volume in the previous trading session was 15.44 billion.
As of 07:05 GMT, China’s A-shares were trading at a premium of 20.77 percent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 12.53 as of the last full trading day while the dividend yield was 2.7 percent.
Source: The Star