US Markets

China shares fall on growth, trade worries; Hong Kong up

Credit: REUTERS/CHINA STRINGER NETWORK

Chinese shares retreated on Tuesday after three sessions of gains as investors fretted over slower growth in the world's second-largest economy and the impact of the Sino-U.S. trade war, even as new data highlighted Beijing's efforts to boost spending.

SSEC -0.1%, CSI300 -0.3%, HSI +0.1%

Trump says slower China growth shows tariffs' 'major effect'

Yuan firmer at 6.8745 per dollar

SHANGHAI, July 16 (Reuters) - Chinese shares retreated on Tuesday after three sessions of gains as investors fretted over slower growth in the world's second-largest economy and the impact of the Sino-U.S. trade war, even as new data highlighted Beijing's efforts to boost spending.

** At the midday break, the Shanghai Composite index .SSEC was down 0.11% at 2,939.08 points.

** China's blue-chip CSI300 index .CSI300 was down 0.34%, with its financial sector sub-index .CSI300FS lower by 0.17%, the consumer staples sector .CSI000912 down 1.27%, the real estate index .CSI000952 up 1.4% and the healthcare sub-index .CSI300HC down 0.7%.

** U.S. President Donald Trump on Monday said slowing economic growth in China is evidence that U.S. tariffs were having "a major effect" and warned that Washington could pile on more pressure. China's economy grew by 6.2% in the second quarter of 2019, its slowest quarterly pace on record.

** China's fiscal spending increased 10.7% in the first six months from a year earlier, the finance ministry said on Tuesday, underlining the government's bid to support the slowing economy.

** The smaller Shenzhen index .SZSC was flat and the start-up board ChiNext Composite index .CNT was weaker by 0.26%.

** Chinese H-shares listed in Hong Kong .HSCE rose 0.06% at 10,845.71, while the Hang Seng Index .HSI was up 0.13% at 28,592.44.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.22% while Japan's Nikkei index .N225 fell 0.72%. Investors are awaiting U.S. retail sales data and corporate earnings to gauge the health of the world's biggest economy, and remain focused on a likely U.S. rate cut this month.

** The yuan CNY=CFXS was quoted at 6.8745 per U.S. dollar, 0.04% firmer than the previous close of 6.8775.

** The largest percentage gainers in the main Shanghai Composite index were China Satellite Communications Co Ltd 601698.SS, up 10.04%, followed by Befar Group Co Ltd 601678.SS, gaining 9.94%, and Jiangsu Chengxing Phosph-Chemical Co Ltd 600078.SS, up by 9.94%.

** The largest percentage losers in the Shanghai index were BanBao Co Ltd 603398.SS, down 5.55%, followed by Shenzhen Sunxing Light Alloys Materials Co Ltd 603978.SS, losing 5.22%, and Beijing Xinwei Technology Group Co Ltd 600485.SS, down by 5.01%.

** So far this year, the Shanghai stock index is up 17.98%, while China's H-share index is up 7.1%. Shanghai stocks have declined 1.23% this month.

** The top gainers among H-shares were Guangzhou Automobile Group Co Ltd 2238.HK, up 3.45%, followed by PICC Property and Casualty Co Ltd 2328.HK, gaining 2.91%, and China Communications Construction Co Ltd 1800.HK, up by 2.24%.

** The three biggest H-shares percentage decliners were China National Building Material Co Ltd 3323.HK, which has fallen 2.92%, Anhui Conch Cement Co Ltd 0914.HK, which has lost 2.1% and China Gas Holdings Ltd 0384.HK, down by 2.0%.

** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares .HSCIE dipped 0.7%, while the IT sector .HSCIIT rose 0.4%. The top gainer on the Hang Seng was Galaxy Entertainment Group Ltd 0027.HK, up 2.69%, while the biggest loser was CNOOC Ltd 0883.HK, which was down 1.48%.

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

(Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)

((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging: andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))

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

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More