Shares tumble as investors 'wait and see'

Tracy Li
Stocks were on a downward trajectory as uncertainties over trade relations with the United States dampened market sentiment. 
Tracy Li

China’s A-share markets continued on a downward trajectory on Thursday as investors took a “wait-and-see” approach amid uncertainties around trade with the United States.

The benchmark Shanghai Composite Index shed 1.48 percent, or 42.81 points, to finish at 2,850.95.

The smaller Shenzhen Component Index slumped by 1.39 percent to end at around 8,877.31 points, while the ChiNext Index was down by 0.84 percent to finish at 1,469.48 points.

The combined turnover of the two bourses came to 434 billion yuan (US$63.6 billion), shrinking from the volume of 488.8 billion yuan during the previous trading day.

Losses were seen across the board, with food and beverage companies and medical firms among the biggest losers. Shares in Shanghai Laiyifen Co Ltd, a leading domestic company which operates a chain of snack stores throughout the country, declined by around 10 percent to stand at 16.16 yuan a share.

Market sentiment was primarily dampened by deteriorating trade relations between the world’s largest two economies, according to analysts.

Late on Wednesday, Beijing voiced its deep disappointment about Washington’s plan to raise tariffs on Chinese imports from Friday and said it would take necessary countermeasures if additional tariffs begin to take effect, according to media reports.

Data from the central bank showed on Thursday that China’s credit growth eased in April after a strong performance in March, with both headline new yuan loan and aggregate financing missing expectations.

April headline new bank loans came in at 1.02 trillion yuan, 161.5 billion yuan less than the same period last year. The growth of total social financing in last month slumped to a weaker-than-expected 1.36 trillion yuan from 2.86 trillion yuan in March.

Special Reports