China stocks down, tracking global selloff

Investors look at an electronic board showing stock information at a brokerage house in Shanghai June 20, 2018. — Reuters pic
Investors look at an electronic board showing stock information at a brokerage house in Shanghai June 20, 2018. — Reuters pic

SHANGHAI, Dec 25 — stocks fell this morning and the Shanghai index approached a four-year low, tracking a global selloff as investors were rattled by Trump administration attempts at reinforcing confidence and the US president’s comments about the Federal Reserve.

A gauge of stocks worldwide posted an eighth straight decline yesterday as investors reacted negatively to the Trump administration’s moves to bolster confidence and the US president called the Federal Reserve the “only problem our economy has.”

The S&P 500 tumbled to the brink of a bear market yesterday as extended their steep selloff in a shortened pre-holiday session, with investors rattled by the US Treasury secretary’s convening of a crisis group and by other political developments.

The CSI300 index fell 2.3 per cent, to 2,969.00 points at the end of the morning session, while the Shanghai Composite Index lost 2.4 per cent to 2,466.29 points, within sight of a four-year low hit mid-October.

China will not resort to “flood-like” stimulus in monetary policy next year, although it will consider more cuts as needed to reserves held at commercial banks, local media quoted a adviser as saying in a report today.

Sectors lost ground across the board, led by financial shares and energy firms as oil prices slumped.

The yuan was quoted at 6.878 per U.S. dollar, 0.3 percent firmer than the previous close of 6.8984.

The largest percentage gainers in the main Shanghai Composite index were Nanjing Textiles Import & Export Corp Ltd, up 10.03 per cent, followed by GuangDong Super Telecom Co Ltd, gaining 10.02 per cent, and Zhejiang Shapuaisi Pharmaceutical Co Ltd, up by 9.94 per cent.

The largest percentage losses in the Shanghai index were Changzhou Tenglong Auto Parts Co Ltd, down 10.02 per cent, followed by Changyuan Group Ltd, losing 9.95 per cent, and Gem-Year Industrial Co Ltd, down by 9.93 per cent.

So far this year, the Shanghai stock index is down 23.59 per cent, while China’s H- is down 14.1 per cent. Shanghai stocks have declined 2.36 per cent this month.

As of 03.44 GMT, China’s A-shares were trading at a premium of 16.41 per cent over the Hong Kong-listed H-shares. — Reuters

Source: The Malay Mail Online

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