China stocks close down

SHANGHAI: China stocks closed down on Friday after a report that US lawmakers pushed to ban Chinese battery firms with ties to Ford and Volkswagen from exporting to the United States.

The decline came even as data showed growth in China’s exports for a second month in May and at a faster pace.

In contrast, global stocks hovered at a record high after the European Central Bank cut interest rates for the first time in five years and traders waited on crucial US monthly jobs data for clues about whether the Federal Reserve would soon follow.

Outbound shipments from China grew 7.6% year-on-year in value in May, customs data showed on Friday, providing some relief to the economy as it battles to mount a durable recovery.

Denting sentiment, the Wall Street Journal reported on Thursday that Chinese battery companies with ties to Ford and Volkswagen should be banned from shipping goods to the US, a group of Republican lawmakers said, alleging their supply chains use forced labour.

At the close, the Shanghai Composite index was up 0.08% at 3,051.28.

The blue-chip CSI300 index was down 0.5%, with its financial sector sub-index higher by 0.18%, the consumer staples sector down 1.16%, the real estate index up 1.34% and the healthcare sub-index down 0.72%.

The Hang Seng index was down 109.85 points or 0.59% at 18,366.95. The Hang Seng China Enterprises index fell 0.68% to 6,510.37.

For the week, the CSI 300 slipped 0.2% and the Hang Seng gained 1.6%.

The sub-index of the Hang Seng tracking energy shares rose 0.3%, while the IT sector dipped 1.55%, the financial sector ended 0.25% lower and the property sector dipped 0.32%.

The smaller Shenzhen index ended up 0.1% and the start-up board ChiNext Composite index was weaker by 2.163%.

China’s Contemporary Amperex Technology (CATL), a partner to Ford, and Gotion High Tech, a battery company partially owned by Volkswagen, should be added immediately to an import ban list, the WSJ said. Shares of CATL slumped 5.7% and Gotion fell 2.1%.