China Market falls on tech rout, US-China tensions

The China share market finished session deeply in the red on Wednesday, 09 September 2020, as risk aversion selloff triggered on tracking tech-led rout on the Wall Street overnight, with rising tech tensions between Washington and Beijing also dampening on risk sentiments. Also hurting sentiment was reports that regulators are stepping up crackdown on speculation.

At closing bell, the benchmark Shanghai Composite Index declined 1.86%, or 61.79 points, to 3,254.63. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 3.22%, or 72.43 points, to 2,175.77. The blue-chip CSI300 index retreated 2.34%, or 109.80 points, to 4,584.59.

Chinese semiconductor shares continued to slide as a possible US sanction against Chinese chip-making giant SMIC cast a pall over the sector. Shanghai-listed shares of Semiconductor Manufacturing International Corp plunged 6%.

 

CURRENCY NEWS: China's yuan declined against greenback on Wednesday, inline with softer mid-point fixing by central bank as greenback. Prior to market opening, the People's Bank of China set the midpoint of the yuan's daily trading band CNY=PBOC at 6.8423 per dollar on Wednesday, weaker than the previous fix of 6.8364. Spot yuan CNY=CFXS opened at 6.8494 per dollar and weakened to 6.8565, its softest level since Aug. 31, before regaining ground to 6.8486 by midday. That was 16 pips weaker than the previous late session close.

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