China’s Main Stock Index at Lowest Close since January 2016
On Wednesday, it was reported that the China’s main stock index closed at its lowest level since January 2016. This is observed as trade war concerns continued to vex investor confidence with China seeking $7 billion in sanctions against the United States over dumping duties.
Today, the Shanghai Composite index ended 0.3 percent lower at 2,656.11, its weakest close since Jan. 28, 2016.
On the other hand, the blue-chip CSI300 index ended 0.7 percent lower at 3,202.02, its lowest close since Aug. 4, 2016.
The CSI300 financial sector sub-index fell 0.21 percent, the consumer staples sector ended 1.94 percent lower, the real estate index finished 0.42 percent lower and the healthcare sub-index shed 2.84 percent.
The smaller Shenzhen index ended down 0.41 percent and the start-up board ChiNext Composite index was weaker by 0.67 percent.
China told the World Trade Organization it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties. Chinese Vice Premier Hu Chunhua said on Wednesday countries should “categorically reject” protectionism in trade.
Bank of England Governor Mark Carney said China’s financial system poses one of the bigger risks to global financial stability.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.36 percent, while Japan’s Nikkei index closed down 0.27 percent.
At 0714 GMT, the yuan was quoted at 6.872 per dollar, largely unchanged from the previous close.