China stocks fall ahead of fresh trade talks; Tencent drags Hong Kong index

SHANGHAI, March 22 (Reuters) - China stocks fell on Friday
morning led by financial shares, as the market's rally showed
signs of fatigue ahead of a fresh round of Sino-U.S. talks next
** Hong Kong's benchmark Hang Sang also dipped, dragged
by index benchmark Tencent Holdings following the
company's lacklustre earnings.
** The CSI300 index fell 1.0 percent to 3,798.76
points at the end of the morning session, but the gauge was
still up 1.4 percent on a weekly basis. The Shanghai Composite
index lost 0.8 percent, to 3,077.56 points, and is up
1.8 percent so far this week.
** The Hang Seng index dropped 0.5 percent to 28,913.55
points, while the Hong Kong China Enterprises Index lost
0.9 percent to 11,444.43.
** With hopes for a Sino-U.S. trade deal largely priced in, news
of a new round of trade talks failed to excite the market.
** A U.S. trade delegation headed by Trade Representative Robert
Lighthizer and Treasury Secretary Steven Mnuchin will visit
China on March 28-29 for the next round of negotiations, China's
commerce ministry said on Thursday.
** In Hong Kong, sentiment was soured by a second-day drop in
Tencent. Tencent Holdings signalled it will reduce its
reliance on gaming in China, where a regulatory review and
one-off investment costs led to its sharpest-ever quarterly
profit drop and slowest annual profit growth in 13 years.
** China's CSI300 financial sector sub-index was
lower by 1.38 percent while the healthcare sub-index
fell 0.26 percent.
** The smaller Shenzhen index was down 1.09 percent
while the start-up board ChiNext Composite index was
weaker by 1.89 percent.
** Around the region, MSCI's Asia ex-Japan stock index
was barely changed while Japan's Nikkei index
was down 0.12 percent.
** The yuan was quoted at 6.7036 per U.S. dollar,
0.06 percent weaker than the previous close of 6.6998.

(Reporting by Samuel Shen and John Ruwitch; Editing by Rashmi Aich)

2019-03-22 06:52:03

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