Stocks slide, trade issues a concern

Source: Xinhua | 2019-01-09

Shanghai stocks remained sluggish yesterday after Monday’s gains with investors cautious over the outcome of trade talks with the US and financial shares posting mixed results.

The benchmark Shanghai Composite Index dipped 0.26 percent to 2,526.46 points.

Dozens of officials from the world’s two largest economies have been talking in a bid to resolve tensions.

Investors took a wait-and-see attitude towards the outcome and any real impact to the economy.

Guodu Securities expects a generally sluggish macroeconomic outlook and slowing profitability while global trade also remains uncertain and investors need to build up confidence over a quite long period.

Although the US and China are showing a willingness to carry out more talks and work toward a deal, it’s not likely the two sides will reach a definitive goal in the short term.

In particular, the US’ hardline stand on Chinese high-tech industries is a concern, said UBS chief China economist and head of Asia economics Wang Tao.

Metal producers also dragged down the index.

Jiangxi Copper Co lost 1.18 percent and Zijin Mining Group Co fell 1.3 percent.