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Views Article – Sharenet Wealth

Asia, News

China stocks close lower as buyers flock to new STAR board

* SSEC -1.3%, CSI300 -0.7%, HSI -1.2%

* HK->Shanghai Connect daily quota used -0.9%, Shanghai->HK daily quota used 2.3%

* FTSE China A50 -0.2%

SHANGHAI, July 22 (Reuters) – China’s major stock indexes closed lower on Monday, as enthusiasm for the country’s new Nasdaq-style STAR Market drew investor attention away from the main boards.

** The blue-chip CSI300 index fell 0.7%, to 3,781.68, while the Shanghai Composite Index closed down 1.3% at 2,886.97.

** More than 40 stocks on the main board tumbled by their 10% daily limits.

** Trading hit a fever pitch, with shares rocketing as much as 520%, as China’s new Nasdaq-style board for homegrown tech firms debuted on Monday, with valuations exceeding even the expectations of veteran investors braced for a wild ride.

** Stocks were also hit after investors reduced expectations of an aggressive interest rate cut by the U.S. Federal Reserve.

** Expectations for a 50-bp cut were scaled back further after the Wall Street Journal reported the Fed was likely to cut rates by 25 bps when it meets later this month, and may make further cuts in the future given global growth and trade uncertainties.

** Investors also eyed developments around Sino-U.S. trade talks.

** U.S. President Donald Trump said on Friday U.S. Treasury Secretary Steve Mnuchin had a very good talk with his Chinese counterpart, amid signals from China that officials could soon meet face-to-face in their bid to end a yearlong trade war.

** Some Chinese companies are seeking new purchases of U.S. agricultural products, China’s official Xinhua news agency said on Sunday, citing authorities, as Beijing and Washington look for ways to end a protracted trade war.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.52%, while Japan’s Nikkei index closed down 0.23%.

** At 07:14 GMT, the yuan was quoted at 6.8776 per U.S. dollar, 0.05% firmer than the previous close of 6.881.

** The largest percentage gainers on the main Shanghai Composite index were Hebei Jinniu Chemical Industry Co Ltd , up 10%, followed by Xinjiang Xuefeng Sci-Tech Group Co Ltd, gaining 9.97% and Jiangsu SOPO Chemical Co Ltd, up by 6.51%.

** The largest percentage losers on the Shanghai index were Harbin High-Tech Group Co Ltd down 10.04%, followed by Tibet Huayu Mining Co Ltd losing 10.04% and Zhejiang Dehong Automotive Electronic & Electrical Co Ltd down by 10.03%.

** About 18.07 billion shares were traded on the Shanghai exchange, roughly 94.1% of the market’s 30-day moving average of 19.21 billion shares a day. The volume in the previous trading session was 14.95 billion.

** As of 07:15 GMT, China’s A-shares were trading at a premium of 27.45% over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)


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