INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China stocks managed to end higher on Friday, but posted their worst weekly loss since early February, as lingering concerns over
a potential full-blown trade war between China and the United States dampened investor sentiment.
The blue-chip CSI300 index closed up 0.5
per cent at 3,608.90, while the Shanghai Composite Index gained 0.5 per cent to 2,889.76 points after hitting a fresh two-year low in early
trade.
For the week, SSEC tumbled 4.4 per cent, while CSI300 slid 3.8 per cent, both logging their worst week since early February.
There
were few signs of easing in trade tensions between China and the United states.
US Commerce Secretary Wilbur Ross said on Thursday the
United States needs to make it harder for its trading partners to have high trade barriers in order to achieve President Donald Trump's
ultimate goal of lower tariffs and a level-playing field.
Stepping up its war of words with the United States, Chinese state media said US
protectionism is self-defeating and a "symptom of paranoid delusions" that must not distract China from its path to modernisation.
China's
commerce ministry on Thursday accused the United States of being "capricious" over bilateral trade issues, and warned that the interests of
US workers and farmers would ultimately be hurt by Washington's penchant for brandishing "big sticks".
While some investors still hope
Washington and Beijing can work out a deal before July 6, when the first round of US tariffs on Chinese goods as well as retaliatory tariffs
by China are due to take effect, others see diminishing hopes of an early compromise.
Around the region, MSCI's Asia ex-Japan stock index
was firmer by 0.49 per cent while Japan's Nikkei index closed down 0.78 per cent.
At 07:04 GMT, the yuan was quoted at 6.4949 per US
dollar, 0.01 per cent weaker than the previous close of 6.494.
The largest per centage gainers in the main Shanghai Composite index were
Aurora Optoelectronics Co Ltd up 10.14 per cent, followed by Cultural Investment Holdings Co Ltd gaining 10.05 per cent and Shenyang Jinbei
Automotive Co Ltd up by 10.05 per cent.
The largest per centage losses in the Shanghai index were Zhongzhu Healthcare Holding Co Ltd down
10.02 per cent, followed by Fuda Alloy Materials Co Ltd losing 10.01 per cent and Eastern Pioneer Driving School Co Ltd down by 10 per
cent.
So far this year, the Shanghai stock index is down 12.6 per cent, the CSI300 has fallen 10.5 per cent while China's H-share index
listed in Hong Kong is down 3 per cent
Shanghai stocks have declined 6.64 per cent this month.
About 12.61 billion shares were traded on the Shanghai exchange, roughly 93.3 per
cent of the market's 30-day moving average of 13.51 billion shares a day
The volume in the previous trading session was 15.44 billion.
As of 07:05 GMT, China's A-shares were trading at a premium of 20.77 per
cent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and below its 200-day moving
average.
The price-to-earnings ratio of the Shanghai index was 12.53 as of the last full trading day while the dividend yield was 2.7 per
