Shanghai shares snap 5-day rally on trade woes ahead of U.S. tariff deadline

China Resources Gas

12/12/2019 07:26

SHANGHAI, Dec 12 (Reuters) - Shanghai stocks snapped a
five-session rally to end lower on Thursday, as investors
remained wary ahead of Washington's decision to proceed with new
tariffs on Chinese goods this weekend. 
    ** The blue-chip CSI300 index  .CSI300  fell 0.3% to close
at 3,891.02, while the Shanghai Composite Index  .SSEC  also
shed 0.3% to 2,915.70.   
    ** U.S. President Donald Trump is expected to meet with top
trade advisers on Thursday to discuss planned Dec. 15 tariffs on
some $160 billion in Chinese goods, three sources familiar with
the plans said, as markets braced for potential negative
impacts.  urn:newsml:reuters.com:*:nL1N28L2BW 
    ** A decision to move ahead with the tariffs could roil
financial markets and scuttle U.S.-China talks to end the
17-month-long trade war between the world's two largest
economies for the remainder of Trump's term. 
    ** There was muted reaction in the A-share market, after the
U.S. Fed kept interest rates unchanged as expected, at its
policy meeting on Wednesday but indicated interest rates would
remain on hold.
    ** Despite the broad weakness, foreigners continued to buy
A-shares, with northbound inflows via the Stock Connect linking
mainland and Hong Kong amounting to about 7.9 billion yuan 
($1.12 billion) on the day. 
    ** Foreign holdings of China's largest listed home
appliances maker Midea Group Co  000333.SZ  is nearing an
offshore ownership cap, as international investors increase
exposure to the country's consumer sector which accounts for
more than half of its economy.  urn:newsml:reuters.com:*:nL4N28M0MK 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.96% while Japan's Nikkei index
 .N225  was up 0.14%.
    ** The yuan  CNY=CFXS  was quoted at 7.0311 per U.S. dollar,
0.11% firmer than the previous close of 7.0386. 
    ** So far this year, the Shanghai stock index is up 17.26%,
while China's H-share index is up 3.7%. Shanghai stocks have
risen 1.83% this month. 
    ** About 15.18 billion shares traded on the Shanghai
exchange on Thursday, roughly 104.5% of the market's 30-day
moving average of 14.53 billion. The volume of shares traded in
the previous session stood at 16.55 billion.
    ** As of 0701 GMT, China's A-shares were trading at a
premium of 26.80% over the Hong Kong-listed H-shares.

($1 = 7.0389 Chinese yuan renminbi)

 (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))