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

Credit: REUTERS/CHINA STRINGER NETWORK

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.

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

** The Hang Seng index .HSI dropped 0.2% to 25,259.69, while the Hong Kong China Enterprises Index .HSCE 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 .MIAPJ0000PUS was weaker by 0.82% while Japan's Nikkei index .N225 was down 1.65%.

** The yuan CNY=CFXS 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 600829.SS, up 10.08%, followed by Shanghai Tongda Venture Capital Co Ltd 600647.SS, gaining 10.03% and Veken Technology Co Ltd 600152.SS, up by 10.02%.

** The largest percentage losses in the Shanghai index were Zhengjiang Huazheng New Material Co Ltd 603186.SS, down 7.66%, followed by Pengqi Technology Development Co Ltd 900907.SS, losing 5.38% and Deluxe Family Co Ltd 600503.SS, down by 5.29%.

** The top gainers among H-shares were China Telecom Corp Ltd 0728.HK, up 3.53%, followed by China Mobile Ltd 0941.HK, gaining 3.03% and China Huarong Asset Management Co Ltd 2799.HK, up by 1.8%.

** The three biggest H-shares percentage losers were Sinopharm Group Co Ltd 1099.HK, which has fallen 4.03%, China Tower Corp Ltd 0788.HK, which has lost 3.2% and Tencent Holdings Ltd 0700.HK, 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.

China stock market graphics suite http://reut.rs/1NfkoGl

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

((luoyan.liu@thomsonreuters.com; Reuters Messaging: luoyan.liu.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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