June 26, 2018 / 4:33 AM / 3 months ago

China, Hong Kong stocks track global sell-off amid trade fears

* SSEC -0.8 pct, CSI300 -1.1 pct, HSI -0.2 pct

* HK->Shanghai Connect daily quota used 1.9 pct, Shanghai->HK daily quota used -0.3 pct

* FTSE China A50 -1.7 pct, BNY Mellon ADR China Select Index -3.9 pct

SHANGHAI, June 26 (Reuters) - China and Hong Kong stocks tracked the global sell-off to edge lower on Tuesday, as an escalating trade friction between the United States and other major economies steered investors away from riskier assets.

** The CSI300 index fell 1.1 percent to 3,520.17 points, hitting its lowest in more than a year, while the Shanghai Composite Index hit a two-year trough. ** The Hang Seng index dropped 0.2 percent to 28,898.64 points, while the Hong Kong China Enterprises Index lost 0.5 percent to 11,148.42. ** 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. ** On the mainland and Hong Kong, real estate and airline shares continued to lead the decline amid a falling yuan. ** An index tracking major developers on the mainland slumped 4.6 percent following a near 5 percent drop in the previous session, as a weakening yuan raised fears of capital outflow that could weigh on assets prices. ** China’s central bank lowered its official yuan midpoint for the fifth straight trading day to 6.5180 per dollar on Tuesday, its weakest in 5-1/2 months amid sharp losses in the local currency a day earlier. ** “We believe A-share investors are overly pessimistic. They kept ignoring good news and just put them as chances for further tightening – i.e. the better economic data, the higher probability that more de-levering measures will come,” said Gao Ting, Head of China Strategy, UBS Securities. ** 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 0.29 percent, while Japan’s Nikkei index was down 0.18 percent. ** The yuan was quoted at 6.5574 per U.S. dollar, 0.28 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, which gained 10.05 percent and Sichuan Zhenjing Corp Ltd, which climbed 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 , which lost 10.01 percent and Nanjing Kangni Mechanical & Electrical Co Ltd, which slipped 10 percent. ** The top gainers among H-shares were CSPC Pharmaceutical Group Ltd up 1.94 percent, followed by China Telecom Corp Ltd gaining 1.69 percent and Huatai Securities Co Ltd up by 1.42 percent. ** The three biggest H-shares percentage decliners were China Shenhua Energy Co Ltd which has fallen 2.42 percent, Air China Ltd which has lost 2.1 percent and China Vanke Co Ltd down by 2.0 percent. ** About 8.09 billion shares have traded so far on the Shanghai exchange, roughly 60.1 percent of the market’s 30-day moving average of 13.46 billion shares a day. The volume traded was 12.19 billion as of the last full trading day. ** As of 0408 GMT, China’s A-shares were trading at a premium of 18.07 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 previous trading day, while the dividend yield was 2.7 percent. ** So far this week, the market capitalisation of the Shanghai stock index rose 0.17 percent to 29.99 trillion yuan.

Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry Jacob-Phillips

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