Mainland stocks fall as trade fears resurface

Chinese mainland stocks ended lower on Thursday as months of see-sawing China-US trade frictions stoked uncertainties over the country’s economic growth, prompting investors to take a cautious stance.

The blue-chip CSI300 index fell 1.16 percent to 3,536.25 points at the end of the trading session, while the Shanghai Composite Index lost 0.74 percent to end at 2,882.23 points.

China’s State planner vowed on Wednesday to prevent extensive job losses across the economy and keep unemployment below existing thresholds as trade frictions with the US created uncertainty in the labor market.

“The escalating China-US trade frictions have brought uncertainties to our country’s economic development and especially to employment stability,” Ha Zengyou, a senior official from the National Development and Reform Commission, told reporters.

Bucking the trend, firms that have businesses in the Tianjin Free Trade Zone posted big gains, with Tianjin Songjiang Co, for instance, surging 10.18 percent.

The largest percentage gainers in the main Shanghai Composite Index were Lotus Health Group Co, which ended up 10.24 percent, followed by Tianjin Songjiang Co, which was up 10.18 percent, and Heilongjiang Interchina Water Treatment Co, which closed up 10.1 percent.

The largest percentage losers in the Shanghai index were Shanghai Tianyong Engineering Co down 9.99 percent, followed by Great-Sun Foods Co losing 9.93 percent and Jiangsu New Energy Development Co down by 9.19 percent.

So far this year, the Shanghai stock index is down 12.8 percent, while the CSI300 has fallen 12.3 percent.