Investors risk sentiments were subdued amid escalating U.S.-China trade dispute raised concerns about the outlook for global economic growth. China said it will impose 25% tariffs on an additional $16 billion worth of imports from the U.S. from Aug. 23, matching Washington's latest move in the trade war.
The China Commerce Ministry said it is responding to the United States' decision to slap 25-percent tariffs on another US$16 billion of Chinese goods Aug. 23. The U.S. Trade Representative's office made the announcement Tuesday as it published a final tariff list targeting 279 imported product lines. The action is the latest by U.S. President Donald Trump to put pressure on China to negotiate trade concessions after imposing tariffs on US$34 billion in goods last month. China has vowed to retaliate to an equal degree. The latest US$16 billion list will hit semiconductors from China, even though many of the basic chips in these products originate from the United States, or South Korea. The 25-percent tariffs also will apply to a broad range of Chinese electronics, plastics, chemicals and railway equipment that the Office of the U.S. Trade Representative (USTR) has said benefit from the Made in China 2025 industrial plan, aimed at making China competitive in high-tech industries.
NEWS FROM THE PRESS MEDIA: Chinese banks NPL back in focus; TP cut - CLSA -- CLSA said the NPL ratio is back in focus in the upcoming results of Chinese banks, as liquidity tightening has made refinancing more difficult. The research house expects a QoQ rebound at Bocom, CQRC and Minsheng though they shall still manage to deliver a profit growth. Cinda, by contrast, may disappoint with an earnings drop as an industry cleanup is forcing AMCs to slow the shadow lending business. CLSA cut across the board the target prices to reflect lower RMB forecast and concern over asset quality.
China Display Opt sees turnaround to loss in H1FY18 - China Display Optoelectronics Technology (00334) said it expects to record a net loss for the six months ended June 2018, compared to a net profit recorded for the corresponding period last year. The loss was mainly attributable to a decrease in sales of LCD modules products owing to the continued weak global demand for smartphones; and a decrease in gross profit margin, mainly due to an increase in the cost of raw materials and an increase in labour costs as a result of rise in workers' wages in the PRC and reduced order visibility. The interim results of the group will be published by 22 August.
OFFSHORE MARKET NEWS, US stock market closed softer on Wednesday. The Dow Jones Industrial Average closed down 45.16 points, or 0.18% at 25,583.75 points, while the S&P500 was down 0.75 points or 0.03% at 2,857.7 points. The tech-heavy NASDAQ index was up 4.66 points or 0.06% at 7,888.3 points.
The major European markets ended mixed on Wednesday. The U.K.'s FTSE 100 Index advanced by 0.8%, while the German DAX Index dipped by 0.1% and the French CAC 40 Index fell by 0.4%.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
