HONG KONG: China stocks closed flat in choppy trade on Tuesday after US President Donald Trump held off rolling out promised tariff hikes on Chinese imports, providing some temporary relief to the markets.
China’s blue-chip CSI300 index added 0.1% at close, giving up gains of as much as 0.8% from earlier in the trading session. The Shanghai Composite index declined less than 0.1% to 3,242.62 after swinging between gains and losses throughout the day.
In Hong Kong, the benchmark Hang Seng Index climbed 0.9% to hit a fresh five-week high.
Trump, who had threatened to slap a 60% tariff on Chinese goods, did not immediately impose tariffs on Monday, but instead called for the government to study trade ties before further actions.
Trump appeared more focused on revamping the US government and rejigging ties with neighbours, rather than suppressing China, said Yang Tingwu, fund manager at Tongheng Investment.
That could give Beijing some breathing space to restructure the domestic economy, the success of which determines markets’ path going forward, he said.
Leading gains on Tuesday, property stocks surged, led by a rebound in China Vanke after the developer announced interest payment on a maturing bond, soothing anxiety over its chief executive who was reportedly detained last week.
Peer Country Garden jumped as much as 30% to a 10-month high, as trading resumed after a nine month-plus suspension to give the embattled property developer time to prepare delayed financial statements.
Comments
Comments are closed.