Chinese A-share markets dip amid escalating China-US tensions
The Chinese A-share market continued to decline on Friday amid escalating diplomatic tensions between China and the US, with the closure of each other’s consulates.
The Shanghai Composite Index dropped 3.86 percent to 3,196.77 points; the Shenzhen Component Index shed 5.31 percent to 12,935.70, and the tech-heavy ChiNext board slid 6.14 percent to 2,627.84 points.
Liquor, securities, free duty and semiconductors shares led the decline. For example, Kweichow Moutai, a Chinese liquor brand and stock giant, dropped 4.82 percent to 1,595.30 yuan ($227.33).
China’s largest chipmaker Semiconductor Manufacturing International Corp, which recently listed in Shanghai, saw its share price plunge 8.67 percent to 71.95 yuan.
Meanwhile, Chinese artificial intelligence chip unicorn Cambricon saw its shares decline 7.88 percent to 259.33 yuan.
For northbound trading – investors with Hong Kong accounts buying Chinese mainland shares – the net outflow reached 16.36 billion yuan on Friday.
Yang Delong, chief economist at the Shenzhen-based
First Seafront Fund Management Co, told the Global Times that Friday’s decline was mainly due to the impact of US provocations with China, and the deteriorating COVID-19 situation overseas.
An analyst surnamed Li said the decline was partly a correction, as the market had started to soar on July 1.
According to data from Wind, the Shanghai Composite Index rose 3.58 percent by
Thursday this week; the Shenzhen Component Stock Index increased by 5.12 percent, and ChiNext climbed 5.8 percent.
“The A-share market may experience an adjustment of two weeks, but long-term growth prospects remain unchanged backed by China’s fast economic recovery,” Yang said.