China shares fall on worries over US-China trade tensions

Tracy Li
A weakening yuan also weighs on investors, and markets see decline in pharmaceutical, consumer and financial stocks. 
Tracy Li

China shares languished in bear market territory today as investors were still weighed down by worries over trade tensions between the US and China as well as a weakening yuan, with declines seen in consumer, pharmaceutical and financial stocks. 

The key Shanghai Composite Index shed 1.10 percent, or 31.33 points, to close at 2813.18.

The Shenzhen Component Index fell 1.83 percent to 9,168.66 points, while the Nasdaq-style ChiNext enterprise board reversed gains on Tuesday to finish lower at 1,546.23.

The escalating Sino-US trade row and the weakening yuan dampened investor sentiment. The yuan slipped to a six-month low, breaking a psychologically key 6.6 per dollar mark yesterday.

The People's Bank of China lowered the yuan's midpoint for the sixth straight trading day to 6.5569 per dollar in a move deemed by analysts as the PBOC's preference for a modest depreciation, a viewpoint echoed by Founder Securities.

Shares of Shanghai Fosun Pharmaceutical (Group) Co Ltd  tumbled 5.79 percent to close at 40.97 yuan (US$6.20).

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