Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    A shares down on trade row

    By Cai Xiao | China Daily | Updated: 2018-06-20 09:30
    Share
    Share - WeChat
    An investor looks at share prices at a brokerage in Fuyang, Anhui province. [Photo by Wang Biao/For China Daily]

    Analysts predict limited long-term effects as growth remains stable, say investors overreacting

    Chinese stocks plunged on Tuesday on fears related to the rapidly escalating trade tensions between Washington and Beijing, but economists said investors were overreacting as the impact of the trade war will likely be limited and China will maintain steady and healthy economic growth.

    The benchmark Shanghai Composite Index ended down 3.78 percent, falling by 114.08 points to 2907.8. The Shenzhen Component Index tumbled 5.31 percent and the ChiNext startup index fell 5.76 percent.

    The sell-off followed the Trump administration's threat on Monday that it would impose 10 percent tariffs on $200 billion of Chinese goods, a move Beijing labeled as "blackmail", to which it would respond in kind.

    "A-share investors overreacted on Tuesday to the trade tensions, as China and the US are still in the bargaining stages," said Li Xunlei, chief economist at Zhongtai Securities Co Ltd. "Donald Trump's decision will largely harm US consumers' benefits, so I think there might be compromise between the two sides."

    "Even if the worst happens, the impact could be limited," he said.

    Li said China's exports to the US in 2017 accounted for less than 20 percent of the nation's global exports that year, and the impact will only be a decrease of 2 percent to 3 percent if US President Trump's threats are seen through.

    According to data from the General Administration of Customs, China's exports increased 8 percent year-on-year to $2.26 trillion in 2017, with the nation's exports to the US totaling $429.7 billion.

    Li said China's economic fundamentals are strong, which will be crucial for the development of the A-share market in the medium and long term.

    China's GDP growth remained stable in the first quarter, up 6.8 percent year-on-year. From January to April this year, the total profits of large-scale industrial companies reached 2.13 trillion yuan ($328 billion), an increase of 15 percent over the previous year, according to data from the National Bureau of Statistics.

    Liu Feng, chief economist of China Galaxy Securities Co, said besides the rising trade conflict between the US and China, liquidity concerns caused by unicorn companies and debt defaults could be other reasons behind the stock market slump.

    "Investor sentiment has been low recently, but they will regain confidence as soon as China's industrial production and consumption show the nation's strong economic resilience," Liu said.

    According to Liu, China's consumption structure is seeing a significant transformation, as people are largely purchasing services, and the service industry is playing an increasingly important role in China's economy.

    Liang Hong, chief economist of the China International Capital Corp Ltd, said that investors were panic selling on Tuesday because of the trade war initiated by the US and also due to China's deleveraging moves.

    "Investors released their negative emotions on Tuesday, and we believe it's a good time for medium and long-term investment," Liang said.

    Thomas Fang, head of China equities at UBS AG, said many overseas institutional investors are showing more enthusiasm than domestic players in the A-share market. He said they are optimistic about China's fundamentals and the attractive price-earning ratios of A shares.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    AV色欲无码人妻中文字幕| 中文字幕一区在线观看视频| 最近2019中文字幕免费直播| 亚洲AV无码久久精品狠狠爱浪潮 | 成在人线av无码免费高潮水| 亚洲AV中文无码乱人伦在线观看| 中文午夜乱理片无码| 亚洲va中文字幕无码久久| 国产精品 中文字幕 亚洲 欧美 | 国产成人无码免费看视频软件| 中文字幕乱码人妻综合二区三区| 中文字幕1级在线| 中文字幕乱码中文乱码51精品| 亚洲中文字幕无码一区| 久久亚洲精品无码观看不卡| 亚洲国产成人精品无码久久久久久综合| 中文字幕日韩精品无码内射| 国产亚洲精久久久久久无码| 午夜无码A级毛片免费视频| 中文字幕无码不卡免费视频| 一本大道香蕉中文在线高清| 亚洲AV无码一区二区二三区软件| 直接看的成人无码视频网站| 中文精品一卡2卡3卡4卡| 亚洲VA中文字幕不卡无码| 久久人妻少妇嫩草AV无码蜜桃| 日韩精品专区AV无码| 无码中文人妻视频2019| 亚洲av无码潮喷在线观看| 岛国无码av不卡一区二区| 线中文在线资源 官网| 国产亚洲精品无码拍拍拍色欲| 无码精品久久久天天影视| 久久久久精品国产亚洲AV无码| 亚洲Av无码乱码在线播放| 中文字幕无码精品三级在线电影| 中文字幕亚洲综合精品一区| 午夜不卡无码中文字幕影院| 精品人妻无码区二区三区| 中文字幕亚洲一区| 一夲道无码人妻精品一区二区|