Shanghai shares tumble on rising US-China trade tension and Huawei's investigation
Shanghai stocks tumbled today after investors were spooked over rising US-China trade tension and on news that Huawei Technologies was being investigated for illegal Iran sales.
The Shanghai Composite Index dropped sharply by 1.38 percent to close at 3,075.03 points.
Huawei is now said to be under investigation by US authorities for illegal Iran sales. This followed US President Donald Trump's imposition of a seven-year ban on sales of technologies by American companies to ZTE Corporation last week.
Southwest Securities said in a note that the China-US trade frictions continued to worsen, raising investor concerns in the broader A-share market, especially in sectors related to the high-tech industry chain.
Electronic component shares declined the most, with Southwest Securities, Zhengjiang Huazheng New Material Co Ltd and XiaMen HongXin Electron-tech Co Ltd all falling sharply by the daily limit of 10 percent.
House appliances companies also tumbled. XiaMen HongXin Electron-tech Co Ltd also fell the maximum 10 percent daily cap and KingClean Electric Co Ltd shed 6.86 percent to 27.98 yuan.
Non-bank financial stocks like Greencourt Capital Inc fell 6.37 percent while Caitong Securities Co Ltd and Xishui Strong Year Co Ltd Inner Mongolia both lost over 4 percent.