The Mainland China equity market were tad lower on Friday, 26 July 2019, as investors booked profit made in previous three sessions on caution ahead of Sino-U. S. trade talks next week. Around late afternoon, the benchmark Shanghai Composite Index eased 0.09%, or 2.75 points, to 2,940.11. The Shenzhen Composite Index, which tracks stocks on China's second exchange, sank 0.05%, or 0.85 points, to 1,571.95. The blue-chip CSI300 index added 0.08%, or 3.27 points, to 3,854.34.
Top US and Chinese negotiators will meet face-to-face meet in Shanghai on Tuesday for two days in the next round of negotiations aimed at de-escalating a tariff war between the two countries.
The talks will be carried out on the basis of equity and mutual respect, China's Ministry of Commerce spokesman Gao Feng said during a press conference, confirming the White House's announcement on Wednesday and media reports earlier this week.
The governments of the world's largest economies have levied billions of dollars of tariffs on each other's imports, disrupting global supply chains and shaking financial markets in their dispute over how China does business with the rest of the world.
Shares in Chinese carmakers skidded lower after an industry association cut its forecast for vehicle sales this year, citing the US-China trade war and tough new emission standards. The China Association of Automobile Manufacturers said on Thursday it expected car sales to fall 5% in 2019. It had previously forecast that sales would be flat this year, after they dropped 2.8% in 2018 the first decline in nearly three decades.
CURRENCY NEWS: China yuan depreciated against greenback on Friday, after softer midpoint fixing by central bank ahead of U. S.-China trade talks set for next week. Before the market open, the PBOC set the midpoint of the yuan's daily trading band at 6.8796 per dollar, 0.09% weaker than the previous fix of 6.8737. In the spot market, onshore yuan eased 0.07% to 6.8785 per dollar.
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