June 26, 2018 / 7:39 AM / 3 months ago

China stocks join global slide, real estate and airline shares drop

* Shanghai stocks lower, blue-chip CSI300 index down

* Gains in Shanghai stocks led by Shanghai Greencourt Investment Group Co Ltd and losses by Zhongzhu Healthcare Holding Co Ltd

* China’s A-shares are at a 18.75 percent premium over H-shares

SHANGHAI, June 26 (Reuters) - China joined the global sell-off of equities on Tuesday, with its share markets falling as escalating trade friction between the United States and other major economies steered investors away from riskier assets.

** The blue-chip CSI300 index fell 0.8 percent to 3,531.11 points, while the Shanghai Composite Index slid 0.5 percent to 2,844.51 points. ** Conflicting signals from the Trump administration over proposed restrictions on foreign investment in U.S. technology companies, along with news that recently imposed import tariffs are starting to disrupt supply chains, sent global stock markets tumbling on Monday. ** Chinese real estate and airline shares continued to lead the decline amid a falling yuan. ** An index tracking major developers on the mainland slumped 4.4 percent following a near 5 percent drop the previous session, as a weakening yuan raised fears of capital outflow that could weigh on asset prices. ** The yuan slumped to a near six-month low against the U.S. dollar on Tuesday, dragged down by a lower official fix as pressure intensified on the local currency from a bitter trade spat with the United States. ** “We believe A-share investors are overly pessimistic,” said Gao Ting, head of China strategy at UBS Securities, adding that they keep “ignoring” good news which could result in authorities taking more deleveraging measures. ** The trading volume is declining and the turnover rate kept low, Gao added. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.13 percent while Japan’s Nikkei index closed up 0.02 percent. ** At 0703 GMT, the yuan was quoted at 6.5563 per U.S. dollar, 0.27 percent weaker than the previous close of 6.5389. ** The largest percentage gainers in the main Shanghai Composite index were Shanghai Greencourt Investment Group Co Ltd up 10.06 percent, followed by Qingdao Tianhua Institute of Chemistry Engineering Co Ltd gaining 10.05 percent and Sichuan Zhenjing Corp Ltd up 10.02 percent. ** The largest percentage losses in the Shanghai index were Zhongzhu Healthcare Holding Co Ltd down 10.08 percent, followed by Nanjing Xinjiekou Department Store Co Ltd losing 10.01 percent and Nanjing Kangni Mechanical & Electrical Co Ltd down by 10 percent. ** So far this year, the Shanghai stock index is down 14 percent, the CSI300 has fallen 12.4 percent while China’s H-share index listed in Hong Kong is down 4.8 percent. Shanghai stocks have declined 8.1 percent this month. ** About 12.59 billion shares were traded on the Shanghai exchange, roughly 93.5 percent of the market’s 30-day moving average of 13.46 billion shares a day. The volume in the previous trading session was 12.19 billion. ** As of 07:03 GMT, China’s A-shares were trading at a premium of 18.75 percent 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 12.37 as of the last full trading day while the dividend yield was 2.7 percent. ** So far this week, the market capitalisation of the Shanghai stock index has risen by 0.17 percent to 29.99 trillion yuan. (Reporting by Shanghai Newsroom; Editing by Richard Borsuk)

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