Stocks fall as trade worries dent sentiment

Major shares on the Chinese mainland extended losses for a third consecutive day on Friday, erasing some of the early gains last week, as fears about China-US trade frictions resurface.

Most stocks posted losses on Friday, dragging down the benchmark Shanghai Composite Index by 0.3 percent to end at 2,873.59 points.

The smaller Shenzhen Component Index closed 0.6 percent lower at 9,295.93 points.

The blue-chip CSI300 index, meanwhile, ended 0.4 percent down at 3,521.23 points.

Over the past week, the Shanghai index rose 1.6 percent, while CSI300 gained 0.8 percent.

Last week, the market capitalization of the Shanghai Composite Index rose 1.93 percent to 30.55 trillion yuan ($4.48 trillion).

Some securities analysts predict that the Shanghai index will still maintain an upward momentum as long as it does not breach the psychologically key 2,850 point level.

In addition, the sound and stable economic fundamental is expected to provide a solid footing for the stock market.

Still, the ongoing trade frictions between China and the US will continue adding downward pressure to the A-share market.

Some analysts believe that the Shanghai index is likely to fluctuate in August to between 2,700 points and 2,900 points.

On Thursday, the US indicated that 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 China’s economic model at the WTO on Thursday, varying from a growth story that has benefited all countries and regions in the past 40 years to“the world’s most protectionist economy,” respectively.

So far in July, Shanghai stocks have gained 0.92 percent.