The Mainland China equity market rebounded on Tuesday, 07 August 2018, as investors chased for bottom fishing across the board after the benchmark index fell to the lowest level in two and a half years on Monday, due to the United States and China exchanging threats of raising import tariffs over the weekend as part of their ongoing trade war. Around afternoon, the benchmark Shanghai Composite Index inclined 1.43%, or 38.55 points, to 2,743.71, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.41 or 20.54 points, to 1,475.63. The blue-chip CSI300 index added 1.53%, or 50.07 points, to 3,323.34.
China's stock market stumbled to the lowest level in two and a half years on Monday, 06 August 2018, as China's and the United States' fresh tariff threats showed the trade war between the two major powers is intensifying. 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.
Chinese 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.
The yuan fell for an eighth consecutive week last week, its longest losing streak since the market rate was unified in 1994.
NEWS FROM PRESS: Anyang Iron reports sharp jump in net profit -- ANYANG Iron & Steel posted 3,562 percent rise in net profit to 1.02 billion yuan on the back of 37% growth in revenue to 15.77 billion yuan in the first half of 2018. Anyang Iron attributed the fast growth to its product structure upgrade and ecological transformation in manufacturing. China's iron and steel industry showed good performance in the first half of this year. The profit of about 380 major companies in the sector reached 139.27 billion yuan, up more than 151 percent year on year, according to the China Iron and Steel Association.
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