INSUBCONTINENT EXCLUSIVE:
SHANGHAI: Chinese shares snapped a five-day losing streak on Tuesday, as investors hunted for bargains in beaten-down real estate and
banking stocks, but the threat of US tariffs on $200 billion worth of imported Chinese goods still clouded the market.
The Shanghai
Composite index closed up 29.84 points, or 1.1 per cent, at 2,720.73, ending a five-day losing streak
The blue-chip CSI300 index ended 1.27 per cent higher, with its financial sector sub-index closed 1.58 per cent firmer, the consumer
staples sector closed up 1.22 per cent, the real estate index ended up 1.83 per cent and healthcare sub-index closed 0.51 per cent higher
The smaller Shenzhen index ended up 1.16 per cent and the start-up board ChiNext Composite index closed higher 0.82 per cent
At 0716 GMT, the yuan was quoted at 6.8299 per US dollar, 0.09 per cent weaker than the previous close of 6.8235
Chinese state-owned banks have swapped dollars for yuan in tenors ranging from a month to a year in the offshore forwards market in recent
days, traders said on Tuesday, providing some support for the yuan as markets braced for a potential major escalation in the US-China tariff
US President Donald Trump is prepared to quickly ramp up a trade war with China and has told aides he is ready to impose tariffs on $200
billion more in Chinese imports as soon as a public comment period on the plan ends this week
Manufacturing activity took a hit from weak orders in August, surveys showed, a sign firms are feeling the pinch from an intensifying trade
war between the United States and China that could derail global growth.
China reported another outbreak of deadly African swine fever late
on Monday, its third new case in two days, as the highly contagious disease spreads rapidly through the world's top pork producer
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.12 per cent, while Japan's Nikkei index closed down 0.05 per cent
The largest per centage gainers in the main Shanghai Composite index were Ningxia Xinri Hengli Steel Wire Rope Co Ltd , which ended 10.06
per cent higher, followed by North Navigation Control Technology Co Ltd, which closed 10.03 per cent higher and ADD Industry Zhejiang Co Ltd
, which closed 10.02 per cent firmer.
The largest per centage losses in the Shanghai index were Nanjing Central Emporium Group Stocks Co
Ltd, which ended down 10 per cent, followed by Harbin Gong Da High-Tech Enterprise Development Co Ltd, which closed 5.03 per cent down and
Shanghai Fukong Interactive Entertainment Co Ltd, which ended down 4.72 per cent.
So far this year, the Shanghai stock index is down 16.8
per cent, the CSI300 dropped 16.5 per cent, while China's H-share index listed in Hong Kong is down 7 per cent
Shanghai stocks have risen 0.93 per cent this month
About 10.90 billion shares were traded on the Shanghai exchange, roughly 83.7 per cent of the market's 30-day moving average of 13.02
The volume in the previous trading session was 10.22 billion
As of 0717 GMT, China's A-shares were trading at a premium of 18.80 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 11.49, as of the last full trading day, while the dividend yield was 2.7 per cent.
