China stocks fall on Sino-US tensions, new virus strain

China stocks fall on Sino-US tensions, new virus strain

SHANGHAI: China stocks ended lower on Tuesday, falling the most in nearly four months on concerns over persisting Sino-U.S. tensions and a more contagious new strain of the coronavirus found in the UK hurting swift global economic recovery.

Countries across the globe shut their borders to Britain on Monday due to fears about a highly infectious new coronavirus strain.

At the close, the Shanghai Composite index was down 1.86 per cent at 3,356.78, its biggest one-day percentage drop since Sept. 3, and the blue-chip CSI300 index closing 1.63 per cent lower in its worst session since Oct. 30.

The smaller Shenzhen index ended down 1.73 per cent, while the start-up board ChiNext Composite index was 2.453 per cent lower.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.48 per cent, while Japan’s Nikkei index closed down 1.04 per cent.

Energy shares led the losses. Anhui Hengyuan Coal Industry and Electricity Power Co Ltd hit its daily downward trading limit, while Huolinhe Opencut Coal Industry Corp Ltd of Inner Mongolia, Shanxi Coking Coal Energy Group Co Ltd and China Shenhua Energy Company Ltd closed more than 5 per cent lower.

However, disposable sanitary product manufacturers soared as China looked to strengthen measures to prevent the arrival of such a new strain of the coronavirus. Xiamen Yanjan New Material Co Ltd was up 20 per cent, and Tianjin TEDA CO Ltd hit its daily upward trading limit.

The Trump administration on Monday published a list of Chinese and Russian companies with alleged military ties that restrict them from buying a wide range of U.S. goods and technology.

So far this year, the Shanghai stock index is up 10.1 per cent and the CSI300 has risen 21.2 per cent, while China’s H-share index listed in Hong Kong is down 7.4 per cent. Shanghai stocks have declined 1.03 per cent this month.

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