INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China's major stock indexes ended nearly flat on Wednesday, as hopes of more stimulus measures to shore up economic growth were
offset by worries over Sino-United States trade dispute.
The blue-chip CSI300 index slipped 0.1 per cent to 3,141.05 points, while Shanghai
Composite Index inched up 0.1 per cent to 2,581.00 points.
China will step up fiscal spending this year to support its economy, focusing on
further cuts in taxes and fees for small firms, finance ministry officials said on Wednesday.
Mounting pressure on world's second-biggest
economy pushed growth last year to its lowest since 1990 even as Beijing stepped up stimulus measures and spurred banks to lend
more.
Putting a dent on sentiment was a report by Financial Times that Trump administration had rejected an offer from China for preparatory
trade talks this week ahead of high-level negotiations scheduled for next week.
White House economic adviser Larry Kudlow pushed back
against reports that a preliminary trade meeting between United States and Chinese officials was cancelled, saying story was not true.
As
much as United States President Donald Trump wants to boost markets through a trade pact with China, he will not soften his position that
Beijing must make real structural reforms, including how it handles intellectual property, to reach a deal, advisers say.
Huawei suppliers
and Chinese telecom stocks were in retreat, after United States said it will seek extradition of telecoms giant's CFO.
Around region,
MSCI's Asia ex-Japan stock index was weaker by 0.07 per cent, while Japan's Nikkei index closed down 0.14 per cent.
At 07:11 GMT, yuan
was quoted at 6.7859 per United States dollar, 0.32 per cent firmer than previous close of 6.8076.
The largest per centage gainers in main
Shanghai Composite index were Zhongnongfa Seed Industry Group Co Ltd , up 10.13 per cent, followed by Beijing Dynamic Power Co Ltd, gaining
10.11 per cent and Sichuan Hongda Co Ltd, up by 10.11 per cent.
The largest per centage losers in Shanghai index were Xinjiang Winka Times
Department Store Co Ltd, down 10 per cent, followed by Wintime Energy Co Ltd losing 9.8 per cent and GuangYuYuan Chinese Herbal Medicine Co
Ltd falling 9.13 per cent.
So far this year, Shanghai stock index is up 3.5 per cent and CSI300 has risen 4.3 per cent, while China's
H-share index listed in Hong Kong is up 5 per cent.
As of 07:12 GMT, China's A-shares were trading at a premium of 17.51 per cent over
Hong Kong-listed H-shares.
