China stocks in line for lowest close since 2014 after US rout
China's stock benchmark is down 25% this year, in line for the worst performance in a decade, as a trade dispute with the US escalated
Shanghai: China stocks were poised for the lowest close since 2014 as investor concern about a rout in the US outweighed hopes the government will do more to support the economy. The Shanghai Composite Index dropped 2.4% as of the midday trading break. Oil companies fell as crude slumped, while Sanan Optoelectronics Co. dropped after its price target was slashed. Hong Kong’s stock market was closed for the holiday.
Stocks in the US slid on Christmas Eve, sending equities in Japan tumbling on Tuesday morning. That was enough for investors in China to disregard a pledge by Chinese policy makers to do more to support a private sector hit by the slowing economy. The State Council said in a statement on Monday that the central bank will improve policies on targeted reserve-requirement ratio cuts and inclusive finance to further support private companies.
China’s stock benchmark is down 25% this year, in line for the worst performance in a decade, as a trade dispute with the US escalated. The CSI 300 Index fell 2.3% on Tuesday, while the small-cap ChiNext Index dropped 2.9%. China’s sovereign bonds advanced, with the yield on 10-year government notes falling 3 basis points to 3.32%.
China Petroleum & Chemical Corp. and PetroChina Co. each fell more than 2.6% as crude dropped to the lowest level in a year and a half.
Sanan Optoelectronics tumbled 4.5% as China International Capital Corp. cut its price target by 40% and lowered its rating to hold. The brokerage said the LED chip market entered recession in the third quarter and would likely worsen in 2019.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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