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.
China stocks edge up, HK down on mild inflation data
The latest inflation data showed China’s economy continued to suffer from deflationary pressure as demand remained weak.
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At the midday break, the Shanghai Composite index was down 0.3% at 3,028.28 points.
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China’s blue-chip CSI300 index was down 0.43%, with its financial sector sub-index lower by 0.37%, the consumer staples sector down 1.29%, the real estate index down 1.79% and the healthcare sub-index down 0.69%.
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Chinese H-shares listed in Hong Kong rose 0.49% to 6,390.53, while the Hang Seng Index was up 0.54% at 18,034.42.
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The smaller Shenzhen index was down 0.3%, the start-up board ChiNext Composite index was higher by 0.37% and Shanghai’s tech-focused STAR50 index was up 0.79%.
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Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.68% while Japan’s Nikkei index was down 0.11%.
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The yuan was quoted at 7.2508 per US dollar, 0.18% weaker than the previous close of 7.238.
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The top gainers among H-shares were BYD Co Ltd, up 7.36%, followed by Sino Biopharmaceutical Ltd, gaining 3.28% and Shenzhou International Group Holdings Ltd, up by 2.89%.
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The three biggest H-shares percentage decliners were Haier Smart Home Co Ltd, which has fallen 2.57%, Zijin Mining Group Co Ltd, which has lost 2.51% and Kuaishou Technology, down by 2.02%.
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