Trade tension hits shares

SHANGHAI stocks slumped yesterday to a new low since October 2016 as trade tensions between the United States and China resurfaced again.

The Shanghai Composite Index tumbled 2.53 percent to close at 3,041.44 points, the biggest decline since March 23.

The White House said in a statement on Tuesday that it would proceed with tariffs on US$50 billion of Chinese imports and impose wider curbs on investment.

Investor concerns over the tensions spilling into a trade war sent Chinese stocks crashing. Shares of nearly 200 companies dropped sharply by the daily limit of 10 percent.

Communication stocks were among the biggest decliners, with Beijing Tricolor Technology Co, Tianjin 712 Communication & Broadcasting Co and Guangdong Super Telecom Co all falling by the 10 percent daily cap.

Machinery makers such as Junhe Pumps Holding Co and Tederic Machinery Co also shed by the maximum decline of 10 percent.

Electronic component makers such as Guangdong Champion Asia Electronics Co and Suzhou Etron Technologies Co were also stocks that fell sharply.

WuXi AppTec Co, a pharmaceutical and medical company, gave up its gains after surging by the maximum daily cap of 10 percent for 16 straight sessions since being newly listed, and retreated 7.34 percent to close at 120.37 yuan.