China stocks ended lower on Tuesday, amid resurgent trade war fears after Beijing unveiled retaliatory trade measures against the United States. At the close, the Shanghai Composite index was down 0.8 percent at 3,136.63, while the blue-chip CSI300 index declined 0.6 percent to 3,862.48. The smaller Shenzhen index ended down 0.78 percent and the start-up board ChiNext Composite index was weaker by 1.46 percent.
China has increased tariffs by up to 25 percent on 128 US products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world's biggest economies in response to US duties on imports of aluminium and steel. Property sector softened as Beijing continued to fight against property speculators in provincial capitals.
Banking firms also sagged as China's banking regulator was said to inspect large client loans. Bucking the broad trend, agriculture-related shares firmed as investors expected those firms to benefit from Beijing's retaliatory measures, with pork producers rallying strongly in particular.
Around the region, MSCI's Asia ex-Japan stock index was up 0.18 percent while Japan's Nikkei index closed down 0.45 percent. The largest percentage gainers in the main Shanghai Composite index were Wuhan Yangtze Communication Industry Group Co Ltd up 10 percent, followed by Henan Taloph Pharmaceutical Stock Co Ltd gaining 9.92 percent and Beijing Hualian Hypermarket Co Ltd up by 8.06 percent.
The largest percentage losers in the Shanghai index were Taiyuan Lionhead Cement Co Ltd down 9.99 percent, followed by Lucky Film Co Ltd losing 5.85 percent and Yonyou Network Technology Co Ltd down by 5.41 percent. As of 07:07 GMT, China's A-shares were trading at a premium of 23.31 percent over the Hong Kong-listed H-shares.
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