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China shares stumbled upon tariff escalation, state purchase seen by Reuters



© Reuters. FILE PHOTO: An investor walks past a screen showing stock information in a Shanghai brokerage house

By Noah Sin and Luoyan Liu

HONG KONG / SHANGHAI (Reuters) – Chinese stocks fell Tuesday as a wage war between Washington and Beijing escalated, though The losses were contained by redeeming comments by US President Donald Trump, and due to suspected government bond purchases of shares.

Both the blue chip CSI300 opened 1

%, but recovered some of these losses, aided by some analysts, by "national team" purchases.

Analysts at Haitong Securities said it was "buying important stocks" by government-backed players, noting that "morning trading volume is close to half of yesterday's full session".

Earlier, Trump said he was holding fire on taxing the remaining $ 325 billion of Chinese goods and announced that he would meet Chinese President Xi Jinping in June and ruled the hope for an agreement to close the tariff

His comments came Following China's announcement of higher US $ 60 billion US dollars on June 1, as opposed to Washington's decision last week to raise its $ 200 billion in Chinese imports. in the middle of the day, the Shanghai reference was minus 0.4%, while the blue-chip CSI 300 index was down 0.2%. The smaller Shenzhen market was down 0.5%.

The CSI300 financial sector sub-indices were up 0.1%, the consumer staple industry was down 0.1%, health papers went 0.5%, and the real estate market lost 0.4%.

Startup The ChiNext board fell 0.3% despite the fact that MSCI confirmed that it would include part of the board in its benchmark for emerging market indices.

"The implementation of the new tariffs is almost three weeks away, and the talks have not collapsed," said Steven Leung, sales manager at UOB Kay Hian in Hong Kong, on rapid recovery in A shares. "People also wonder if China Stress Points in Chinese-American Negotiations, with the White House Financial Advisor Larry Kudlow arguing for "very strong" enforcement provisions in a possible deal, and Beijing insisted it would not swallow. "

Some "bitter fruit" that damaged their interests.

Hong Kong's stock market, which returned from a holiday, shed 1.6% in its first reaction to the collective agreement.

Foreign investors took money from the Table via Stock Connect, also closed on Monday, selling a net of 7.4 billion yuan ($ 1.08 billion) in A shares on Tuesday, selling more than 20 billion yuan worth of mainland shares via Connect so far this month, and snapping a five-month shopping series.

In the foreign exchange market, it climbed on Trump's comments and jumped from a four-month low in early trading to 6.88933, up 0.28% a day, while strengthening over 0.1% against the US dollar to 6.88724. [FRX/]

"The market will desperately believe in a deal and take some headlines to spark renewed optimism," said a Hong Kong-based FX sales counter with an international lender.

Before the onshore market opened, the People's Bank of China set its focal point at its weakest within four months, after the currency erased its annual gains on Monday. But traders said fixation was still higher than market expectations.

($ 1 = 6.8714 Chinese yuan)


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