China's blue-chip stocks fall amid trade uncertainty; HK gains

Credit: REUTERS/China Stringer Network

China's blue-chip stocks dropped on Wednesday, after a senior White House adviser played down expectations of fresh trade talks, while Beijing's latest pledge to further liberalise financial markets seemed to generate limited enthusiasm.

SSEC 0.0%, CSI300 -0.3%, HSI 1.4%

HK->Shanghai Connect daily quota used 1%, Shanghai->HK daily quota used 0%

FTSE China A50 -0.4%

SHANGHAI, Sept 11 (Reuters) - China's blue-chip stocks dropped on Wednesday, after a senior White House adviser played down expectations of fresh trade talks, while Beijing's latest pledge to further liberalise financial markets seemed to generate limited enthusiasm.

** The CSI300 index .CSI300 was down 0.3% at 3,946.58 points at the end of the morning session, while the Shanghai Composite Index .SSEC was unchanged at 3,021.10 points.

** Mainland investors remained cautious amid lingering uncertainties over potential trade negotiations between China and the United States.

** A senior White House adviser tamped down expectations on Tuesday for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world's two largest economies.

** Meanwhile, Beijing's latest effort to further open up its financial markets seemed to provide limited support for the market, as the move appeared largely symbolic.

** China's foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital.

** "At the end of the day, whether foreign investors will invest more in China or not depends on the current and future fundamental outlook of the underlying economy, trend of corporate earnings, attractiveness of their yield and yield spreads, and the perceived strength or weakness of the (yuan)," said Khiem Do, head of Greater China investments at Barings.

** The defensive consumer and healthcare firms led losses on the mainland, with the CSI liquor index .CSI399997 down 3.8% as investors pocketed gains via the Stock Connect.

** Hong Kong stocks climbed, led by developers .HSNP and financial firms .HSCIF, which were among the hard-hit sectors.

** The Hang Seng index .HSI added 1.4% to 27,044.87 points, while the Hong Kong China Enterprises Index .HSCE gained 1.3% to 10,535.11.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.49% while Japan's Nikkei index .N225 was up 0.86%.

** The yuan CNY=CFXS was quoted at 7.1148 per U.S. dollar, 0.03% weaker than the previous close of 7.113.

** The largest percentage gainers in the main Shanghai Composite index were ENN Ecological Holdings Co Ltd 600803.SS, up 10.02%, followed by Phenix Optical Co Ltd 600071.SS, gaining 10% and Besttone Holding Co Ltd 600640.SS, up by 9.99%.

** The largest percentage losses in the Shanghai index were Shanghai East-China Computer Co Ltd 600850.SS, down 6.17%, followed by Beken Corp 603068.SS, losing 6.14% and Zhejiang Jiuzhou Pharmaceutical Co Ltd 603456.SS, which slipped 6.02%.

** The top gainers among H-shares were Haitong Securities Co Ltd 6837.HK, up 4%, followed by China Taiping Insurance Holdings Co Ltd 0966.HK, gaining 3.14% and New China Life Insurance Co Ltd 1336.HK, up by 3.01%.

** The three biggest H-shares percentage decliners were ANTA Sports Products Ltd 2020.HK, which has fallen 2.57%, Shenzhou International Group Holdings Ltd 2313.HK, which has lost 2.3% and CSPC Pharmaceutical Group Ltd 1093.HK, down by 1.7%.

** As of 0417 GMT, China's A-shares were trading at a premium of 28.71% 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 Sherry Jacob-Phillips)

((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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