China stocks post biggest weekly loss in 11 on Sino-U.S. tensions

  • 12/11/2020
  • 00:00
  • 10
  • 0
  • 0
news-picture

SHANGHAI, Dec 11 (Reuters) - China’s blue-chip stocks fell for a fifth straight session on Friday to post their biggest weekly loss in 11 weeks, as a flare-up in Sino-U.S. tensions and worries about policy tightening dented risk appetite. ** The blue-chip CSI300 index fell 1% to 4,889.63, while the Shanghai Composite Index lost 0.8% to 3,347.19. ** For the week, the CSI300 index declined 3.5% in its worst weekly performance since late September. ** S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-U.S. tensions. ** FTSE Russell made a similar move last week, while rival index publisher MSCI is expected to follow suit. ** Shares of the 10 companies which will be removed from S&P DJI equity indexes, including Hangzhou Hikvision Digital Technology Co Ltd, Semiconductor Manufacturing International Corp (SMIC) and China Communications Construction Co , all fell on Friday, though modestly. ** In another sign of rising tensions, the U.S. Federal Communications Commission said on Thursday it had begun the process of revoking China Telecom’s authorization to operate in the United States. ** Investors are also concerned that Beijing could start tightening monetary policies amid a robust economic recovery and surging commodity prices, though analysts do not see any major policy reversals any time soon. ** “A-share sentiment will likely stay range-bound for the rest of year amid rising signals of potential policy tightening and U.S.-China tension uncertainty,” Morgan Stanley wrote in a note. ** Chinese stocks fell across the board. Shares of Chinese retailer Suning.com Co slumped 5.5% to a more than 10-year low amid lingering concerns over its financial health. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)

مشاركة :