China Market falls on impeachment talk, trade concerns, geopolitics

The Mainland China equity market closed down on Wednesday, 25 September 2019, as risk sentiments weighed down by an escalation in trade tensions between the United States and China, political uncertainty surrounding Donald Trump and steep falls in commodity prices. Most of SSE sectors declined, with telecommunications, electronics and equipment makers being notable losers, while banking sector held out above water. At closing bell, the benchmark Shanghai Composite Index declined 1%, or 29.91 points, to 2,955.43. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.61%, or 26.79 points, to 1,638.77. The blue-chip CSI300 index sank 0.77%, or 30.10 points, to 3,870.98.

Risk sentiments weighed down after House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Overnight Democratic House speaker Nancy Pelosi formally initiated impeachment proceedings against Mr Trump after US markets closed, accusing the president of betraying his oath of office and national security. Ms Pelosi said the House will look at allegations Mr Trump pressed his Ukrainian counterpart to investigate local business activities of the son of former vice-president Joe Biden. The president has said he will release the transcript of his call with Volodymyr Zelensky.

 

Sentiment was also weaker following the US President's tough comments regarding China at the United Nations, where he castigated Beijing for pursuing an economic model that he claimed had created an unfair playing field.

CURRENCY NEWS: The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 5 pips to 7.0724 against the U.S. dollar on Wednesday.

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