Nov 28, 2024 at 5:18 am GMT
By Summer Zhen
HONG KONG (Reuters)-China and Hong Kong stocks resumed their downtrend on Thursday after a rebound in the previous session, weighed down by subdued sentiment as investors feared an escalation of the trade war with the U.S. and a further ban on chip sales to China.
** At the midday break, the blue-chip CSI300 index.CSI300was down 0.79%, and the Shanghai Composite index. SSEC slid 0.3% at 3,299.87 points.
** In Hong Kong, the Hang Seng Index.HSIfell 1.32% at 19,344.07, while the Hang Seng China Enterprises Index. HSCE dropped 1.51% to 6,921.28.
** Investors are largely in a wait-and-see mode as they look for clarity on U.S. President-elect Donald Trump's trade policies and potential consequences.
** In response to Trump's pledge to slap additional tariffs on Chinese goods, China's state mediawarnedthe move could drag the world's top two economies into a mutually destructive tariff war.
** "A key risk for China's economy and markets in 2025 comes from Trump's policies-the proposed tariffs of 60% could reduce GDP growth by up to 2% over the next four to six quarters," Michelle Qi, head of China equities at Eastspring Investments, said in a note.
** The Biden administration could announce additional curbs on sales of semiconductor equipment and artificial intelligence (AI) memory chips to China as soon as next week, Bloomberg News reported on Wednesday, adding to the dampened sentiment.nFWN3MY1HQ
** Auto shares led the decline.CSI931008after media reports said thatBYDand other automakers pushed suppliers to cut prices, signalling that a brutal price war in the world's largest auto market is set to escalate.
** That also weighed on the broader consumption sector.CSI000912.
** At lunch break, BYD's Hong Kong6862.HKand mainland shares002594.SZfell 2.9% and 2.6%, respectively, while SAIC Motor Corp600104.SSwas down more than 5%.
** Around the region, MSCI 's Asia ex-Japan stock index.MIAPJ0000PUSwas weaker by 0.26%, while Japan's Nikkei index.N225was up 0.78%.
** Chinese ADRs.HXCrose 2.82% overnight.
** The yuanCNY=CFXSwas quoted at 7.2478 per U.S. dollar, 0.01% weaker than the previous close of 7.247.
 Reporting by Summer Zhen; Editing by Abinaya Vijayaraghavan 

Sumber : Reuters