Commerce war worries pull China stocks down

China stocks ended lower on Tuesday, amid resurgent trade war fears after China unveiled retaliatory trade measures against the US.

At the close, the Shanghai Composite Index was down 0.84 percent at 3,136.63 points, while the blue-chip CSI300 index declined 0.63 percent to 3,862.48 points.

The smaller Shenzhen index ended down 0.91 percent and the start-up board ChiNext index was weaker by 1.46 percent.

China has increased tariffs by up to 25 percent on 128 US products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world’s biggest economies.

The property sector softened as China continued to fight against property speculators in provincial capitals.

Banking firms also sagged as China’s banking regulator was said to be inspecting large client loans.

Bucking the broad trend, agriculture-related shares firmed as investors expected those firms to benefit from China’s retaliatory measures, with pork producers rallying strongly in particular.

The largest percentage gainers in the main Shanghai Composite Index were Wuhan Yangtze Communication Industry Group Co up 10 percent, followed by Henan Taloph Pharmaceutical Stock Co gaining 9.92 percent .

The largest percentage losers in the Shanghai index were Taiyuan Lionhead Cement Co down 9.99 percent, followed by Lucky Film Co losing 5.85 percent.