Wait...
  1. Home >
  2. Export Import News >
  3. Foreign Exchange >
  4. Chinese stocks and currency markets take it on the chin >
  5. Chinese stocks and currency markets take it on the chin

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Chinese stocks and currency markets take it on the chin.


Date: 07-05-2019
Subject: Chinese stocks and currency markets take it on the chin
Chinese stocks tumbled along with the yuan as a pair of tweets by President Donald Trump undermined confidence in a trade agreement. 

The ChiNext Index of technology companies and small caps dropped the most since January 2016 as trading on mainland markets resumed after last week’s holiday. The yuan also weakened the most in three years before paring its drop. People familiar with the matter said Chinese state funds stepped in as they sought to stabilize the equity market, while at least one large bank offered to sell the dollar as the yuan fell, according to traders. Statebacked giant PetroChina Co. suddenly erased its decline in afternoon trading before closing lower. 

China is said to be considering delaying a trip by its top trade negotiators to Washington after Trump threatened the country with steeper tariffs over the pace of trade talks. 

The news “distracts the market’s focus from a nascent economic recovery to short-term volatility. Risk assets will be under pressure for now,” said Hao Hong, chief strategist at Bocom International Holdings Co. “Because both parties want a deal, I continue to believe that the long-term uptrend trumps short-term volatility.” 

If Chinese equities see significant selling pressure, authorities are likely to intervene to support the market, Hong said earlier. 

Optimism that China and the US would reach a deal on trade helped make Shanghai equities the hottest in the world this year, although lackluster corporate earnings and concern Beijing is easing back on stimulus dragged the Shanghai Composite Index down nearly 6 per cent from its April high before Monday. The benchmark has failed to hold above a number of key support levels as popular trades unraveled. 

The offshore yuan fell as much as 1.3 per cent to 6.8218 per dollar, its lowest since Jan. 10, before trading at 6.7797 as of 4:30 p.m. in Hong Kong. The onshore rate slid 0.46 per cent to 6.7659 per dollar. 

“Investors will remain bearish on the yuan, as they reprice in trade war risks because the new developments are a reversal of previous positive progress,” said Ken Cheung, a senior foreign-exchange strategist at Mizuho Bank Ltd. in Hong Kong. “The news was unexpected. Stop-loss orders will push the yuan even lower.” 

Trump previously delayed increasing tariffs on $200 billion in goods to 25 per cent from 10 per cent after agreeing to a Dec. 1 truce with Chinese President Xi Jinping to give negotiators time to work out a comprehensive agreement. 

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate,” Trump wrote in a tweet on Sunday. “No!” 

Trade-war proxy stocks tumbled Monday, with ZTE Corp. down as much as 13 per cent in Hong Kong and pork producer WH Group Ltd. falling 12 per cent. Exporters including Lens Technology Co. and Luxshare Precision Industry Co. both declined by the 10 per cent daily limit in Shenzhen, while airlines and port developers also dropped. Gold producers rose as investors sought haven stocks. 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 01-07-2020
Notification No. 58/2020 – Central Tax
Seeks to make eighth amendment (2020) to CGST Rules

Date: 30-06-2020
Notification No. 54/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Date: 30-06-2020
Circular No.31/2020-Customs
Extension of validity of AEO certification for ease of renewal process (Modification in Circular No. 27/2020 dated 02.06.2020) [Circular No. 31/2020 - Customs dated 30.06.2020].

Date: 30-06-2020
Notification No. 57/2020 – Central Tax
Seeks to amend notification no. 52/2020-Central Tax in order to provide conditional waiver of lat fees for the period from July, 2017 to July, 2020.

Date: 27-06-2020
Notification No. 55/2020 – Central Tax
Seeks to amend notification no. 35/2020-Central Tax in order to extend due date of compliance which falls during the period from "20.03.2020 to 30.08.2020" till 31.08.2020.

Date: 27-06-2020
Notification No. 56/2020 – Central Tax
Seeks to amend notification no. 46/2020-Central Tax in order to further extend period to pass order under Section 54(7) of CGST Act till 31.08.2020 or in some cases upto fifteen days thereafter.

Date: 24-06-2020
Notification No. 04/2020 – Integrated Tax
Seeks to bring into force Section 134 of Finance Act, 2020 in order to bring amendment to Section 25 of IGST Act w.e.f. 30.06.2020.

Date: 24-06-2020
Notification No. 05/2020 – Integrated Tax
Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.

Date: 24-06-2020
Notification No. 02/2020 – Union Territory Tax
Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.

Date: 24-06-2020
Notification No. 49/2020 – Central Tax
Seeks to bring into force Sections 118, 125, 129 & 130 of Finance Act, 2020 in order to bring amendment to Sections 2, 109, 168 & 172 of CGST Act w.e.f. 30.06.2020.



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001