China Market tumbles on fears of Sino-US tensions escalation

2 Aug 2022 , 05:21 PM

Mainland China share market finished session steep lower on Tuesday, 02 August 2022, as risk aversion selloff triggered across the board, amid concerns over U.S.-China relations following reports that U.S. House of Representatives Speaker Nancy Pelosi will visit Taiwan later in the day. At close of trade, the benchmark Shanghai Composite Index retreated by 2.26%, or 73.69 points, to 3,186.27. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, dropped 2.92%, or 64.32 points, to 2,138.17. The blue-chip CSI300 index was down 1.95%, or 81.66 points, to 4,107.02. Stocks were in negative territory throughout the day ahead of Pelosis potential arrival in Taiwan during her trip to Asia. China, which regards Taiwan as a renegade province awaiting reunification with the mainland, by force if necessary, has warned that Pelosis visit would escalate bilateral tensions. CURRENCY NEWS: Chinas yuan declined against the U.S. dollar, despite firmer mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7462 per dollar, 0.01% firmer than the previous fix of 6.7467. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7686 at around late afternoon, 0.02% down from the previous late session close of 6.7675. Powered by Capital Market – Live News