The Mainland China equity market were mixed on Friday, 10 August 2018, following the mixed cues from Wall Street overnight amid rising global trade tensions, while tech stocks were rip higher after Beijing revamps national technology leadership group. Around afternoon, the benchmark Shanghai Composite Index declined 0.14%, or 3.85 points, to 2,790.53, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.3%, or 4.39 points, to 1,510.03. The blue-chip CSI300 index added 0.02%, or 0.73 points, to 3,398.26.
Investors risk sentiments remained subdued amid escalating U. S.-China trade dispute raised concerns about the outlook for global economic growth. The Chinese Ministry of Commerce's announcement of 25% tariff on $16 billion worth of U. S. goods. The goods being targeted by China include large passenger cars and motorcycles as well as various fuels and fiber optical cables. The announcement by China came after the U. S. finalized a list of approximately $16 billion worth of Chinese imports that will be subject to a 25% tariff. The second tranche of tariffs, which are due to take effect on August 23rd, follows the first tranche of tariffs on approximately $34 billion of Chinese imports that went into effect on July 6th.
The group will be led by Premier Li Keqiang, who has chaired the original body which was formerly called the National Technology and Education leadership Group since 2013, along with Vice Premier Liu He as deputy. The main duties are: to study the strategies for the country's technology development strategies and major policies; to discuss major technology projects and to coordinate between the State Council and various departments on major technology issues, the statement said. The announcement comes as the US-China battleground is increasingly becoming focused on high-end technology after China undertook a major technology transformation designed to move its economy up the value chain. Guangxi Fortune Technology, Shanghai Dazhihui Software Develop added and Guangxi Radio and TV Network gained in a range of 1-2%.
Shares of energy sector declined, on tracking weakness in crude oil prices. WTI crude declined $0.13 or 0.19% to close at $66.81 a barrel on the New York Mercantile Exchange, a fresh seven-week low.
NEWS FROM PRESS: China Mobile profit rises 4.7% -- China Mobile, the world's biggest mobile phone operator by subscribers, reported a 4.7% rise in first-half net profit, helped by mobile data growth. Net profit for the January-June period was 65.6 billion yuan (US$9.62 billion), compared with 62.7 billion yuan a year earlier. Operating revenue rose 2.9% to 391.8 billion yuan. Average revenue per user of 4G customers dropped to 64.4 yuan from 71.2 yuan a year ago, while average handset data traffic per user per month jumped 122%.
ECONOMIC NEWS: Factory inflation slows in July -- The producer price index (PPI) a gauge of factory gate inflation rose 4.6% in July from a year earlier, according to the National Bureau of Statistics (NBS). That was slower than 4.7% in June. The July inflation data are the first official reading on the impact on prices from China's tariffs on US$34 billion in U. S. goods that went into effect July 6 and apply to a range of products from soybeans to mixed nuts and whiskey. On a month-on-month basis, the PPI rose 0.1% in July, compared with a 0.3% growth in June.
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