December 9, 2019 / 7:35 AM / a month ago

China's blue-chips end lower after weak export data

SHANGHAI, Dec 9 (Reuters) - China’s blue-chip stocks closed lower on Monday after latest trade data highlighted persistent headwinds for the country’s manufacturers amid a prolonged Sino-U.S. trade war.

** The blue-chip CSI300 index fell 0.2% to 3,895.45, while the Shanghai Composite Index added 0.1%to 2,914.48.

** China’s exports in November shrank for the fourth consecutive month, underscoring the pressure on manufacturers from the tariff war with the United States, but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand.

** The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China’s policymakers could unleash more stimulus, as growth in the world’s second-largest economy cooled to nearly 30-year lows.

** As far as the latest Chinese trade numbers suggest, the impetus is on for some form of Sino-U.S. trade resolution to ease the pressure on the trade front, Jingyi Pan, a Singapore-based market strategist with financial services firm IG, said in note.

** Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of U.S. tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

** China will keep its economic growth within a reasonable range in 2020, with more “forwarding-looking, targeted and effective” policies that also fend off risks, a top decision-making body of the ruling Communist Party said on Friday.

** A state-owned enterprise (SOE) in China’s northern province of Inner Mongolia defaulted on part of a 1 billion yuan ($142.1 million) privately-issued bond over the weekend, the latest in a string of corporate delinquencies that has raised concerns about contagion risk as the economy slows.

** For the short term, China’s major indexes are likely to continue to trade in narrow ranges, as the economy is still under pressure, while liquidity conditions tend to be tight as year-end draws near, Lianxun Securities analysts wrote in report.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.29%, while Japan’s Nikkei index was up 0.33%.

** The yuan was quoted at 7.036 per U.S. dollar, 0.01% weaker than the previous close of 7.035.

** So far this year, the Shanghai stock index is up 16.77%, while China’s H-share index has risen 2.8%. Shanghai stocks gained 1.39% this month.

** By 0707 GMT, China’s A-shares were trading at a premium of 28.71% over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)

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