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China stocks fall sharply on economic, trade war worries

FILE PHOTO: An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China November 24, 2017. REUTERS/Aly Song/File Photo

SHANGHAI (Reuters) - China’s main stock indexes fell over 1 percent on Wednesday, as investors dumped banking, property and resources shares amid fresh signs of anaemic growth, and ahead of a likely escalation of the Sino-U.S. trade war.

The blue-chip CSI300 index fell 2.0 percent, to 3,298.14, while the Shanghai Composite Index lost 1.7 percent to 2,704.34 points.

Growth in China’s services sector weakened again in August as new business picked up only slightly from July’s more than two-year low, a private survey showed on Wednesday.

Market sentiment was also curbed by a likely escalation in the Sino-U.S trade war. U.S. President Donald Trump 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.

“Investor confidence is very weak. There’s too much uncertainty around the trade war,” said Yang Hongxun, Shanghai-based analyst at investment consultancy Shandong Shenguang.

With growth in exports under pressure, and property market under government curbs, “investors are asking: where is the new engine of growth?”

Indexes tracking banking, property and resources shares dropped over 2 percent.

Reporting by Shanghai Newsroom; Editing by Simon Cameron-Moore