China Market extends losses on trade doubts

The Mainland China equity market closed down on Thursday, 26 September 2019, as investors remained wary of a U.S.-China trade deal happening anytime soon despite latest statement from U.S. President Donald Trump told reporters at the United Nations in New York on Wednesday that a deal between the U.S. and China could come sooner than you think. At closing bell, the benchmark Shanghai Composite Index declined 0.9%, or 26.35 points, to 2,929.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.51%, or 41.05 points, to 1,597.72. The blue-chip CSI300 index sank 0.77%, or 29.84 points, to 3,841.14.

U.S. President Donald Trump said a deal to end a nearly 15-month trade war with China could happen sooner than people think and that the Chinese were making big agricultural purchases from the United States, including of beef and pork. That came after Trumped rebuked China's trade practices on Tuesday at the United Nations General Assembly, saying he would not accept a "bad deal" in the negotiations. In spite of latest statement from US President Donald Trump, market experts see a bit of scepticism around a trade deal happening soon in the Asia-Pacific region.

 

Highlighting heightened uncertainty over the U.S.-China trade negotiations, Trump delivered a stinging rebuke to China's trade practices earlier in the week at the United Nations General Assembly.

The ongoing tariff fight between the U.S. and China has taken a toll on the trade-dependent island nation's economy, with both the Singapore government and economists cutting their GDP growth forecast for 2019.

CURRENCY NEWS: The central parity rate of the Chinese currency renminbi, or the yuan, at 7.0729 against the U.S. dollar as against 7.0724 yesterday.

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