SHANGHAI: China stocks fell on Thursday as Europe’s additional tariffs on Chinese electric cars deepened economic worries, but Hong Kong shares gained after US and world stocks touched record highs overnight.
The European Commission told automakers on Wednesday it would impose extra duties of up to 38.1% on imported Chinese electric cars from July. Although investors shrugged off the anticipated announcement - major Chinese electric car makers including BYD, Li Auto and Geely Auto all rebounded - the punitive duties reminded investors of the growing trade tensions between China and the West, and cast a cloud over Chinese exports.
The latest inflation data showed China’s economy continued to suffer from deflationary pressure as demand remained weak.
At the close, the Shanghai Composite index was down 0.28% at 3,028.92.
The blue-chip CSI300 index was down 0.51%, with its financial sector sub-index lower by 0.41%, the consumer staples sector down 1.53%, the real estate index down 2.06% and the healthcare sub-index down 1.09%.
The smaller Shenzhen index ended down 0.62% and the start-up board ChiNext Composite index was weaker by 0.091%. In Hong Kong, the Hang Seng index was up 174.79 points or 0.97% at 18,112.63. The Hang Seng China Enterprises index rose 0.98% to 6,421.81.
The sub-index of the Hang Seng tracking energy shares dipped 0.8%, while the IT sector rose 1.94%, the financial sector ended 0.12% higher and the property sector rose 0.32%.
The largest percentage gainers in the main Shanghai Composite index were Shenzhen Xunjiexing Technology Corp Ltd, up 20.05%, followed by Zhejiang Zone-King Environmental Sci & Tech Co Ltd, gaining 20.04%, and Shenzhen Kiwi Instruments Co Ltd, up by 20%.
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