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China stocks end weaker as trade war uncertainty weighs

Credit: REUTERS/CHINA STRINGER NETWORK

China stocks ended lower on Wednesday as lingering uncertainty over the Sino-U.S. trade dispute continued to unnerve investors, and while the positive impact from MSCI's latest phase of China stock inclusion fades.

SHANGHAI, Aug 28 (Reuters) - China stocks ended lower on Wednesday as lingering uncertainty over the Sino-U.S. trade dispute continued to unnerve investors, and while the positive impact from MSCI's latest phase of China stock inclusion fades.

** The blue-chip CSI300 index .CSI300 ended down 0.4% at 3,802.58, while the Shanghai Composite Index .SSEC lost 0.3% to 2,893.76 points.

** Earlier in the week, U.S. President Donald Trump predicted a trade deal with China after positive gestures by Beijing, but China's foreign ministry said it was unaware of any calls made to the United States.

** The issue regarding Trump's credibility has taken centrestage, said Jingyi Pan, strategist, IG Group.

** "While the baseline view that both the U.S. and China will eventually resolve the trade conflict to avoid sustaining a lose-lose situation remains, President Donald Trump's mercurial

temperaments have now been perceived to be a factor likely to invite China to hold their horses on a deal," he wrote, adding that for markets, the added sense of uncertainty could also translate to further volatility.

** The market has also lost support from MSCI inclusion on Wednesday. Chinese shares rose in the previous session, after MSCI raised the inclusion factor for A-shares to 15% from 10% after close on Aug. 27, driving passive net inflow of about $4.5 billion into A-shares.

** The CSI300 financial sector sub-index .CSI300FS was lower by 0.93%, the consumer staples sector .CSI000912 ended down 0.08%, the real estate index .CSI000952 closed 0.44% lower and the healthcare sub-index .CSI300HC down 0.84%.

** The smaller Shenzhen index .SZSC ended down 0.12% and the start-up board ChiNext Composite index .CNT was weaker by 0.18%.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.04%, while Japan's Nikkei index .N225 closed up 0.11%.

** At 0723 GMT, the yuan CNY=CFXS was quoted at 7.1615 per U.S. dollar, 0.01% firmer than the previous close of 7.1625.

** The largest percentage gainers in the main Shanghai Composite index were Wintime Energy Co Ltd 600157.SS, which closed up 10.2%, followed by Shenyang Jinbei Automotive Co Ltd 600609.SS, gaining 10.1% and Guangdong Rongtai Industry Co Ltd 600589.SS, up by 10.09%.

** The largest percentage losses in the Shanghai index were Suzhou Keda Technology Co Ltd 603660.SS, which closed 10.01% lower, followed by Nanjing OLO Home Furnishing Co Ltd 603326.SS, which lost 10% and Changzhou Xingyu Automotive Lighting Systems Co Ltd 601799.SS, which ended down by 8.25%.

(Reporting by Shanghai Newsroom, Editing by Sherry Jacob-Phillips)

((samuel.shen@tr.com))

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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