China Market falls 0.58%

The Mainland China equity market closed session down on Tuesday, 25 September 2018, as risk sentiments weighed down by ongoing US-China trade war, with shares of property developers being notable losers after reports of possible property pre-sale restrictions in Guangdong and five other provinces. At closing bell, the benchmark Shanghai Composite Index declined 0.58%, or 16.35 points, to 2,781.14, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.54%, or 7.80 points, to 1,437.31. The blue-chip CSI300 index dropped 0.9%, or 30.69 points, to 3,379.80.

The United States and China imposed fresh tariffs on each other's goods on Monday as the world's biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth.

 

Shares of property developers declined after reports of possible property pre-sale restrictions in Guangdong and five other provinces. As per reports, six Chinese provinces - Hubei, Sichuan, Jiangsu, Henan, Guangdong and Liaoning - have been told to reconsider the pre-sale system, which is a key source for builders to finance projects. The ministry has instructed local housing bureaus of these provinces to make an in-depth study of the pre-sale system, and set out reasons why it should be retained or scrapped, the report added. Shanghai was Future Land Holdings dropped 6.3% to 26.72 yuan. Poly Real Estate Group fell 6% to 12.36 yuan.

Shares of banks and financials were also lower, hurt by rising tensions between the US and China in the ongoing trade war. China Merchants Bank fell 2.2% to 29.62 yuan. Industrial and Commercial Bank of China shed 1.4% to 5.67 yuan, while Agricultural Bank of China eased 1.8% to 3.86 yuan.

Chinese airlines slumped on worries over higher oil prices amid reluctance by the Organization of the Petroleum Exporting Countries to raise output to offset Iran sanctions.

Among individual stocks, Shandong Gold Group shares rose 1.3% to 23.81 yuan after the state-owned gold miner announced a cross shareholding agreement with Canadian miner Barrick Gold. It will purchase up to US$300 million worth of Barrick shares, while Barrick will invest the equal amount in its shares. The agreement follows the purchase of a 50% stake by Shandong Gold in the Veladero mine in Argentina from Barrick in June 2017.

HNA Technology shares locked 10% lower circuit after the company said it scrapped a plan to buy Beijing-based Dangdang and a related e-commerce firm.

CURRENCY NEWS: China's yuan declined against the U.S. dollar on Tuesday, inline with soft mid-point fixing by People Bank of China and as escalating Sino-U.S. trade tension continued to dent market sentiment. Prior to market opening on Tuesday, the People's Bank of China (PBOC) set the midpoint rate at 6.844 per dollar, 83 pips weaker than Friday's fix of 6.8357. In the spot market, the onshore yuan opened at 6.8584 per dollar and was changing hands at 6.8627 at midday, 27 pips weaker than the previous late session close. The offshore yuan was trading 0.02% weaker than the onshore spot at 6.8643 per dollar.

Powered by Capital Market - Live News