China shares derail as U.S. move against HK dents sentiment

Shenzhou International group

15/07/2020 05:50

* SSEC -1.4%, CSI300 -1.0%, HSI -0.6%
    * HK->Shanghai Connect daily quota used -1.8%, Shanghai->HK
daily
quota used 2.7%
    * FTSE China A50 -0.8%

    SHANGHAI, July 15 (Reuters) - China and Hong Kong shares
fell on Wednesday on deepening worries about Sino-U.S.
decoupling after President Trump signed a bill that would
penalize banks doing business with Chinese officials who
implement the new security law. 
 
** At the midday break, the Shanghai Composite index  .SSEC  was
down 1.39% at 3,367.21 points, erasing earlier gains.
 
** China's blue-chip CSI300 index  .CSI300  was down 1.04%, with
its financial sector sub-index  .CSI300FS  dropping 1.79%, the
consumer staples sector  .CSI000912  up 0.55%, the real estate
index  .CSI000952  down 2.15% and the healthcare sub-index
 .CSI300HC  up 2.1%.
 
** Chinese H-shares listed in Hong Kong  .HSCE  fell 0.69% to
10,333.46, while the Hang Seng Index  .HSI  was down 0.55% at 
25,337.34, after opening higher at 1.6%.
 
** U.S. president Donald Trump on Tuesday ordered an end to Hong
Kong's special status under U.S. law to punish China for what he
called "oppressive actions" against the former British colony,
and signed a bill approved by the U.S. Congress to penalize
banks doing business with Chinese officials who implement the
new security law.  urn:newsml:reuters.com:*:nL2N2EL1MV
 
** China said on Wednesday it will impose retaliatory sanctions
on U.S. individuals and entities after Trump's move.
 urn:newsml:reuters.com:*:nB9N2E0031
 
** The sanction threats over Hong Kong would dent short-term
sentiment and cast shadow on funding flows of the city, said
Zhang Qi, analyst with Haitong Securities, adding that the
latest bill reinforced the idea that frictions between China and
U.S. has become normalized.
 
** The smaller Shenzhen index  .SZSC  was down 1.77% and the
start-up board ChiNext Composite index  .CNT  was weaker by
1.34%.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  firmed up by 0.29%, while Japan's Nikkei index
 .N225  advanced 1.28%.
 
** The yuan  CNY=CFXS  was quoted at 7.0024 per U.S. dollar,
0.07% firmer than the previous close of 7.0075. 

 (Reporting by Cheng Leng, Luoyan Liu and Andrew Galbraith,
Editing by Sherry Jacob-Phillips)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))