Views Article – Sharenet Wealth

Asia, News

China, Hong Kong stocks track global retreat as recession fears loom

* SSEC falls 0.6%, CSI300 0.5% down; HSI slips 0.2%

* HK->Shanghai Connect daily quota used -0.9%, Shanghai->HK daily quota used 4.7%

* FTSE China A50 -0.4%

SHANGHAI, Aug 15 (Reuters) – China and Hong Kong stocks fell on Thursday, tracking a selloff on Wall Street, as an inverted U.S. bond yield curve intensified fears about a global recession.

** The CSI300 index fell 0.5% to 3,662.38 at the end of the morning session, while the Shanghai Composite Index lost 0.6% to 2,791.60.

** The Hang Seng index dropped 0.2% to 25,259.69, while the Hong Kong China Enterprises Index lost 0.3% to 9,840.98.

** Wall Street sold off sharply on Wednesday as recession fears gripped the market after the U.S. Treasury yield curve temporarily inverted for the first time in 12 years.

** All three major U.S. indexes closed down about 3%, with the blue-chip Dow posting its biggest one-day point drop since October after 2-year Treasury yields surpassed those of 10-year bonds, which is considered a classic recession signal.

** “Investors shall continue to be prudent, as the trend of China’s economic slowdown remains, while there is no material improvement in Sino-U.S. trade talks,” Guosheng Securities noted in report.

** China’s economy stumbled more sharply than expected in July, with industrial output growth cooling to a more than 17-year low, as the intensifying U.S. trade war took a heavier toll on businesses and consumers.

** China made no trade concessions after U.S. President Donald Trump postponed 10% tariffs on over $150 billion worth of Chinese imports, senior U.S. officials said on Wednesday, adding that talks aimed at resolving the trade fight would continue and markets should be patient.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.82% while Japan’s Nikkei index was down 1.65%.

** The yuan was quoted at 7.0298 per U.S. dollar, 0.07% weaker than the previous close of 7.025.

** The largest percentage gainers in the main Shanghai Composite index were HPGC Renmintongtai Pharmaceutical Corp , up 10.08%, followed by Shanghai Tongda Venture Capital Co Ltd, gaining 10.03% and Veken Technology Co Ltd, up by 10.02%.

** The largest percentage losses in the Shanghai index were Zhengjiang Huazheng New Material Co Ltd, down 7.66%, followed by Pengqi Technology Development Co Ltd, losing 5.38% and Deluxe Family Co Ltd, down by 5.29%.

** The top gainers among H-shares were China Telecom Corp Ltd, up 3.53%, followed by China Mobile Ltd, gaining 3.03% and China Huarong Asset Management Co Ltd , up by 1.8%.

** The three biggest H-shares percentage losers were Sinopharm Group Co Ltd, which has fallen 4.03%, China Tower Corp Ltd, which has lost 3.2% and Tencent Holdings Ltd, down by 2.9%.

** As of 0415 GMT, China’s A-shares were trading at a premium of 31.91% over the Hong Kong-listed H-shares.

(Reporting by Luoyan Liu and John Ruwitch; Editing by Rashmi Aich)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )