China, Hong Kong stocks fall as trade war fears persist

Hengan International

04/06/2019 05:37

* SSEC falls 0.8%, CSI300 0.8% lower, HSI slips 0.3%
    * USTR, Treasury say China pursuing 'blame game' on trade
talks
breakdown
    * China May factory activity shows recovery still patchy
-Caixin
PMI

    SHANGHAI, June 4 (Reuters) - China and Hong Kong stocks
declined on Tuesday, as worries persisted over an escalating
Sino-U.S. trade war and the country's economic momentum. 
    ** The CSI300 index  .CSI300  fell 0.8% to 3,601.68 at the
end of the morning session, while the Shanghai Composite Index
 .SSEC  also lost 0.8% to 2,865.67. 
    ** The Hang Seng index  .HSI  dropped 0.3% to 26,804.81,
while the Hong Kong China Enterprises Index  .HSCE  lost 0.6% to
10,366.30. 
    ** U.S. President Donald Trump's administration said on
Monday that China was pursuing a "blame game" in recent public
statements and a weekend white paper that misrepresented the
trade negotiations between the world's two largest economies.
 urn:newsml:reuters.com:*:nL2N23A1Q9  
    ** China's factory activity expanded at a steady but modest
pace in May, a private survey showed, but analysts say
front-loading of exports by firms to the United States to avoid
higher tariffs masked underlying weakness in the economy.
 urn:newsml:reuters.com:*:nL4N23A0ZV 
    ** Investors need be patient for the moment, as the market
correction since the benchmark Shanghai index hit a 15-month
high of 3,288.45 on April 8 is not sufficient, Haitong
Securities wrote in report. 
    ** The internal and external factors could deteriorate in
June, as China's economic data could weaken further, and as
there are no signs of easing in Sino-U.S. trade tensions, the
brokerage added.  
    ** The brokerage also noted that a correction on Wall Street
will curb global risk appetite and accelerate foreign outflows. 
    ** The Nasdaq tumbled 1.6% on Monday, confirming a
correction as it was dragged down by Alphabet, Facebook and
Amazon.com on fears the companies are the targets of U.S.
government antitrust regulators.  urn:newsml:reuters.com:*:nL2N23A1I7   
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.22% while Japan's Nikkei index
 .N225  was down 0.09%.
    ** The yuan  CNY=CFXS  was quoted at 6.908 per U.S. dollar,
0.07% weaker than the previous close of 6.903. 
    ** The biggest percentage gainers on the main Shanghai
Composite index were Heilongjiang Transport Development Co Ltd
 601188.SS , up 10.13%, followed by Longjian Road & Bridge Co
Ltd  600853.SS , up 10.1% and Changyuan Group Ltd  600525.SS ,
up 10.09%.
    ** The largest percentage losers on the Shanghai index were
Gansu Dunhuang Seed Group Co Ltd  600354.SS , down 10.04%,
followed by Shanghai Industrial Development Co Ltd  600748.SS ,
losing 10.02% and Wanxiang Doneed Co Ltd  600371.SS , down by
10.02%.
    ** So far this year, the Shanghai stock index is up 15.89%,
while China's H-share index is up 3.0%. 
    ** The top gainers among H-shares were China Tower Corp Ltd
 0788.HK , up 3.28%, followed by China Resources Land Ltd
 1109.HK , gaining 1.26% and Hengan International Group Company
Ltd  1044.HK , up by 1.21%.
    ** The three biggest H-shares percentage decliners were CSPC
Pharmaceutical Group Ltd  1093.HK , which has fallen 3.98%,
Guangzhou Automobile Group Co Ltd  2238.HK , which has lost 2.7%
and Anhui Conch Cement Co Ltd  0914.HK , down by 2.5%.
    ** As of 0419 GMT, China's A-shares were trading at a
premium of 27.15% over the Hong Kong-listed H-shares.

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (Reporting by Luoyan Liu and John Ruwitch; Editing by Rashmi
Aich)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))