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在线翻译:
szdaily -> Markets -> 
Stocks, yuan slide on fresh trade salvos
    2018-08-07  08:53    Shenzhen Daily

CHINA’S stocks stumbled yesterday as China’s and the United States’ fresh tariff threats showed the trade war between the two major powers is intensifying.

The Shanghai Composite Index and the blue-chip CSI300 Index both closed 1.3 percent lower yesterday, having erased earlier gains.

The yuan also weakened despite central bank efforts to shore up the tumbling currency following its longest weekly losing streak on record.

Domestic media on the weekend accused the United States of blackmail and said a proposed set of differentiated tariffs on US$60 billion worth of U.S. imports showed rational restraint.

The proposal of tariffs on goods ranging from liquefied natural gas (LNG) to some aircraft followed a proposal by the Trump administration of higher 25 percent tariffs on US$200 billion worth of Chinese imports to the United States.

Weakness in Chinese shares was particularly evident in health care and consumer firms, which have suffered in recent sessions as public anger over a major vaccine scandal has prompted investors to reduce their exposure to the sectors.

The CSI300 sub-index tracking health care firms fell 4 percent, while the consumer staples sub-index was off 1.8 percent.

Real estate firms, which have come under pressure on speculation that regulators are planning new measures to curb property price rises, also fell, dragging the real estate sub-index down 2.2 percent.

The slump in Chinese markets yesterday comes after the Shanghai Composite and CSI300 indexes suffered their biggest losses since February last week, weighed by a combination of weak economic data and concerns over the growth impact from the trade war.

“The pressure on China’s economic growth will be relatively heavy amid the trade frictions with the United States, and risk appetite could continue to sour,” said Yang Weixiao, an analyst with Founder Securities in Beijing.

With liquidity still tight, the benchmark Shanghai Composite could fall below 2,638 points, seen as a key psychological level since early 2016, he said.

After strengthening earlier yesterday, the yuan turned weaker, trading hands at 6.8438 per U.S. dollar, 150 pips weaker than the previous late session close of 6.8288.

The yuan fell for an eighth consecutive week last week, its longest losing streak since the market rate was unified in 1994. (SD-Agencies)

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