China stocks down as trade worries dent sentiment

China stocks ended down on Friday, as investors were cautious amid concerns over the Sino-US trade friction. The blue-chip CSI300 index ended 0.4 percent down at 3,521.23, while the Shanghai Composite Index closed 0.3 percent lower at 2,873.59 points. For the week, SSEC was up 1.6 percent, while CSI300 gained 0.8 percent.
The United States signalled on Thursday it is set to push ahead on trade talks with Canada and Mexico after agreeing to suspend hostilities over tariffs with Europe in a fragile deal that may clear the way for renewed pressure on China. Chinese and US envoys presented radically differing visions of Beijing's economic model at the World Trade Organization on Thursday, a choice between "the world's most protectionist economy" and a growth story that has benefited all countries.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.34 percent, while Japan's Nikkei index closed 0.56 percent higher. At 0702 GMT, the yuan was quoted at 6.8102 per US dollar, 0.38 percent weaker than previous close of 6.7845. The largest percentage gainers in the main Shanghai Composite index were Shanghai Qiangsheng Holding Co Ltd, which closed up 10.12 percent, followed by Tibet Tianlu Co Ltd, which ended 10.05 percent higher and Hunan Tyen Machinery Co Ltd, which closed 10.04 percent firmer.
The largest percentage losses in the Shanghai index were Zhengping Road & Bridge Construction Co Ltd, which closed down 10.04 percent, followed by Xinjiang East Universe Group Gas Co Ltd, which ended 10 percent lower and Shanghai Hile Bio-Technology Co Ltd, which closed down 10 percent.
So far this year, the Shanghai stock index is down 13.1 percent, the CSI300 slipped 12.6 percent, while China's H-share index listed in Hong Kong is down 5.9 percent. Shanghai stocks gained 0.92 percent this month.
About 14.64 billion shares were traded on the Shanghai exchange, roughly 105.3 percent of the market's 30-day moving average of 13.90 billion shares a day. The volume in the previous trading session was 16.84 billion. As of 0703 GMT, China's A-shares were trading at a premium of 16.99 percent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and below its 200-day moving average. The price-to-earnings ratio of the Shanghai index was 12.54 as of last full trading day, while dividend yield was 2.6 percent. So far this week, the market capitalisation of the Shanghai stock index rose 1.93 percent to 30.55 trillion yuan.