China shares slip on Sino-U.S. tensions; consumer, healthcare stocks drag

Credit: REUTERS/Aly Song

China shares fell on Thursday, dragged down by consumer and healthcare firms, due to profit booking after four days of gains and as tensions between Washington and Beijing escalated further over a U.S. move to purge "untrusted" Chinese apps.

SSEC -0.38%, CSI300 -0.88%, HSI -1.63%

Consumer firms weigh, losses led by distillers

Trump administration stepping up efforts to 'purge' Chinese apps

SHANGHAI, Aug 6 (Reuters) - China shares fell on Thursday, dragged down by consumer and healthcare firms, due to profit booking after four days of gains and as tensions between Washington and Beijing escalated further over a U.S. move to purge "untrusted" Chinese apps.

** At the midday break, the Shanghai Composite index .SSEC was down 0.38% at 3,364.79, after rising 2.6% over the previous four sessions. The blue-chip CSI300 index .CSI300 was down 0.88%.

** A sub-index tracking health care firms .CSI300HC fell 2.49%. Consumer staples firms .CSI000912 dropped 1.81% as large liquor makers, which have posted strong gains since March, pulled back.

** Kweichow Moutai Co Ltd 600519.SS fell 1.68%, Wuliangye Yibin Co Ltd 000858.SZ dropped 2.68% and Shanxi Xinghuacun Fen Wine Factory Co Ltd 600809.SS fell 4.26%.

** U.S. President Donald Trump's administration said on Wednesday it was stepping up efforts to purge "untrusted" Chinese apps from U.S. digital networks and called the Chinese-owned short-video app TikTok and messenger app WeChat "significant threats".

** In Hong Kong, Hang Seng Index heavyweight Tencent Holdings 0700.HK, WeChat's developer dropped 2.67%, weighing on the broader index.

** Chinese H-shares listed in Hong Kong .HSCE fell 1.38% to 10,115.26, while the Hang Seng Index .HSI was down 1.63% at 24,692.59.

** The smaller Shenzhen index .SZSC was down 0.92%, the start-up board ChiNext Composite index .CNT was weaker by 1.7% and Shanghai's tech-focused STAR50 index .STAR50 was down 1.12%​.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.03% while Japan's Nikkei index .N225 was down 0.49%.

** The yuan CNY=CFXS was quoted at 6.942 per U.S. dollar, 0.1% weaker than the previous close of 6.935. ** So far this year, the Shanghai stock index is up 10.74%, while China's H-share index is down 8.2%. Shanghai stocks have risen 2.04% this month.

(Reporting by Andrew Galbraith; Editing by Rashmi Aich)

((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.

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