Stock markets fall into negative territory

China’s stock markets fell into negative territory on Friday, pulled down mainly by securities brokers.

The benchmark Shanghai Composite Index retreated 0.96 percent to close at 3,354.04 points after much fluctuation during the day.

The smaller Shenzhen Component Index dropped 1.55 percent to finish at 13,648.50 points, while the ChiNext Index tumbled 2.29 percent to 2,749.95.

Turnover on the two main bourses was 1.26 trillion yuan (US$181 billion), compared with 1.29 trillion yuan in the previous session.

Most sectors suffered, but the national defense military industry posted strong gains, with nearly 20 stocks rising by the daily limit.

Data released on Friday by China’s General Administration of Customs showed dollar-denominated exports in July rose 7.2 percent from a year ago.

Meanwhile, dollar-denominated imports fell 1.4 percent, against predictions of a 1 percent year-on-year rise.

Shares of Chinese tech firms listed in Hong Kong fell on Friday afternoon after US President Donald Trump issued executive orders banning any US transactions with Chinese tech firms Tencent and ByteDance.

The ban will take effect in 45 days.

Wendy Liu, head of China Strategy at UBS Investment Research, said more US-listed Chinese companies are accelerating the pace of finding alternatives.

Forty-one of them meet the market cap and revenue requirements for secondary listing in Hong Kong, while those that do not have options such as takeovers, going private and then relisting elsewhere, or delisting, Liu said.

“We expect dual listings, going private and M&A to accelerate over the next few quarters,” she said.