China Market falls on US consulate closure

The China share market finished session mere lower after trimming early losses on Thursday, 23 July 2020, as investor risk sentiment weighed down by simmering concern about an escalation of Sino-U.S. tensions after the US ordered China's consulate in the city of Houston to close within 72 hours.

At closing bell, the benchmark Shanghai Composite Index dropped 0.24%, or 8.05 points, to 3,325.11. The Shenzhen Composite Index, which tracks stocks on China's second exchange, eased 0.02%, or 0.50 point, to 2,250.92. The blue-chip CSI300 index shed 0.04%, or 2.01 points, to 4,712.44.

In the latest deterioration in Sino-U.S. ties, the United States ordered China to close its consulate in Houston within 72 hours, saying it was to protect American intellectual property and Americans' private information. China strongly condemned the move, and as per reports Beijing was considering shutting the U.S. consulate in Wuhan in retaliation. It was the latest instance of friction between the world's two largest economies on everything from trade to the South China Sea and Beijing's tightening grip over Hong Kong.

 

CURRENCY NEWS: The yuan declined against the dollar on Thursday, due to weaker official guidance rate set by central bank after a dramatic escalation in tensions between Washington and Beijing. Prior to the market opening, the People's Bank of China (PBOC) weakened the midpoint rate to 6.9921 per dollar, 203 pips, or 0.3%, weaker than the previous fix of 6.9718.

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