China stocks retreat on renewed trade deal worries

Credit: REUTERS/CHINA STRINGER NETWORK

China stocks ended lower on Wednesday, shadowed by renewed doubts over the prospects of a first-phase of the Sino-U.S. trade deal.

SHANGHAI, Oct 30 (Reuters) - China stocks ended lower on Wednesday, shadowed by renewed doubts over the prospects of a first-phase of the Sino-U.S. trade deal.

** The blue-chip CSI300 index .CSI300 fell 0.5% to 3,891.23, while the Shanghai Composite Index .SSEC also shed 0.5% to 2,939.32.

** An interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a U.S. administration official said on Tuesday.

** Despite the trade concerns, foreign money continued to flow into the A-share market via the Stock Connect linking Hong Kong and the mainland as Beijing vowed more opening-up.

** China will eliminate all restrictions on foreign investments not included in its self-styled "negative lists", a vice commerce minister said on Tuesday, and also will "neither explicitly nor implicitly" force foreign investors and companies to transfer technologies.

** Technology transfers have been a major source of tension between China and the United States as both countries have been embroiled in a trade war for over a year.

** Investors were also watching corporate profits as the third-quarter earnings season will soon conclude.

** Consumer firms .CSI000911 fell the most on the mainland, led by electric car maker BYD 002594.SZ slumping 6.8% on bleak profit and outlook.

** The A-share market is cheap compared with other types of yuan-denominated assets, but would stay quiet within the rest of the year, as the decisive policy and economic factors for a bull rally are yet to emerge, Shengang Securities noted in report.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.29%, while Japan's Nikkei index .N225 closed down 0.57%.

** At 0707 GMT, the yuan CNY=CFXS was quoted at 7.0606 per U.S. dollar, 0.07% firmer than the previous close of 7.0656.

** About 15.88 billion shares were traded on the Shanghai exchange, roughly 97.6% of the market's 30-day moving average of 16.26 billion shares a day. The volume in the previous trading session was 16.61 billion.

** As of 0707 GMT, China's A-shares were trading at a premium of 29.97% over the Hong Kong-listed H-shares.

(Reporting by Shanghai Newsroom; 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.

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