China-US trade stress hits shares

Source: Xinhua | 2018-06-28

CHINA shares languished in bear market territory yesterday as investors were still concerned by trade tensions between the US and China as well as a weakening yuan, with declines recorded in consumer, pharmaceutical and financial stocks.

The key Shanghai Composite Index shed 1.10 percent, or 31.33 points, to close at 2813.18.

The Shenzhen Component Index fell 1.83 percent to 9,168.66 points, while the Nasdaq-style ChiNext enterprise board reversed gains on Tuesday to finish lower at 1,546.23.

The escalating Sino-US trade row and the weakening yuan dampened investor sentiment. The yuan slipped to a six-month low, breaking a psychologically key 6.6 per dollar mark today.

The People's Bank of China lowered the yuan's midpoint for the sixth straight trading day to 6.5569 per dollar in a move deemed by analysts as the PBOC's preference for a modest depreciation, a viewpoint echoed by Founder Securities.

Shares of Shanghai Fosun Pharmaceutical (Group) Co Ltd tumlbed 5.79 percent to close at 40.97 yuan (US$6.20).