17-09-2018, 05:46 PM
China stocks drop to near four-year low as Trump said to prepare new tariffs
Reuters
SEPTEMBER 17, 2018
SHANGHAI, Sept 17 (Reuters) - China’s main Shanghai Composite index fell to its lowest close in nearly four years on Monday as reports said U.S. President Donald Trump would unveil new tariffs on $200 billion of imported Chinese goods this week.
The Shanghai Composite index dropped 1.1 percent to 2,651.79 points, its worst close since Nov. 27, 2014. The blue-chip CSI300 index also declined 1.1 percent, to 3,204.92 points.
In Hong Kong, the Hang Seng index was down 1.3 percent in late afternoon trade, and the China Enterprises index was off 1.2 percent.
A senior official in the Trump administration told Reuters that Trump would announce the new tariffs as early as Monday. China has vowed to retaliate to any new U.S tariff action, and may decline to participate in further talks if new tariffs are announced.
On Monday, the widely read Global Times tabloid, published by the ruling Communist Party’s People’s Daily, said in an editorial that China would not only play defence in an escalating trade war.
Everbright Sun Hung Kai analysts, said in a note Monday, said China “would very unlikely be visiting the U.S. against this backdrop with both sides looking to preserve face and be seen to be in a strong position.”
The anticipated new tariffs, reported to be 10 percent, may cover a wide range of items including internet technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies, according to a list of items announced in July.
Trump directed aides to proceed with the new tariffs despite Treasury Secretary Steven Mnuchin’s attempts to restart trade talks with China.
Fears of an escalating trade war pulled shares lower across the board. A CSI300 sub-index tracking the real estate sector ended 1.4 percent lower, industrial firms fell 1.2 percent and healthcare firms lost 2.4 percent.
More details in https://www.reuters.com/article/china-st...SL3N1W32C3
Reuters
SEPTEMBER 17, 2018
SHANGHAI, Sept 17 (Reuters) - China’s main Shanghai Composite index fell to its lowest close in nearly four years on Monday as reports said U.S. President Donald Trump would unveil new tariffs on $200 billion of imported Chinese goods this week.
The Shanghai Composite index dropped 1.1 percent to 2,651.79 points, its worst close since Nov. 27, 2014. The blue-chip CSI300 index also declined 1.1 percent, to 3,204.92 points.
In Hong Kong, the Hang Seng index was down 1.3 percent in late afternoon trade, and the China Enterprises index was off 1.2 percent.
A senior official in the Trump administration told Reuters that Trump would announce the new tariffs as early as Monday. China has vowed to retaliate to any new U.S tariff action, and may decline to participate in further talks if new tariffs are announced.
On Monday, the widely read Global Times tabloid, published by the ruling Communist Party’s People’s Daily, said in an editorial that China would not only play defence in an escalating trade war.
Everbright Sun Hung Kai analysts, said in a note Monday, said China “would very unlikely be visiting the U.S. against this backdrop with both sides looking to preserve face and be seen to be in a strong position.”
The anticipated new tariffs, reported to be 10 percent, may cover a wide range of items including internet technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies, according to a list of items announced in July.
Trump directed aides to proceed with the new tariffs despite Treasury Secretary Steven Mnuchin’s attempts to restart trade talks with China.
Fears of an escalating trade war pulled shares lower across the board. A CSI300 sub-index tracking the real estate sector ended 1.4 percent lower, industrial firms fell 1.2 percent and healthcare firms lost 2.4 percent.
More details in https://www.reuters.com/article/china-st...SL3N1W32C3