China shares end lower on Sino-US tensions; securities firms drop

BEIJING/SHANGHAI: China shares closed lower on Wednesday, led by losses in securities firms, as concerns over Sino-US relations weighed on sentiment.

At the close, the Shanghai Composite index was down 1.12% at 3,371.96.

The blue-chip CSI300 index was down 1.34%, with its sub-index tracking securities firms lower by 3.11%, the consumer staples sector down 0.92%, the real estate index down 1.35% and the healthcare sub-index down 1.12%.

The smaller Shenzhen index ended down 1.57% and the start-up board ChiNext Composite index was weaker by 1.764%.

China's factory gate prices fell at a slower pace in November, adding to signs that the economy continues to recover from the COVID-19 pandemic, but consumer prices declined for the first time in over a decade on falling food prices.

US President-elect Joe Biden is considering appointing former South Bend, Indiana, Mayor Pete Buttigieg to a high-level ambassadorship, possibly to China, Axios reported on Tuesday, citing people familiar with the matter.

Biden's national security team plans to broadly review sanctions operations at the US Treasury Department, including an evaluation of current programmes, staffing and budgets, Bloomberg News reported, citing people familiar with the matter.

Around the region, MSCI's Asia ex-Japan stock index was barely changed, while Japan's Nikkei index closed up 1.33%.

At 07:01 GMT, the yuan was quoted at 6.5273 per US dollar, 0.07% firmer than the previous close of 6.5322.