Stocks extend weekly losses amid mixed data

The Chinese mainland blue-chip index closed higher on Friday, following its peers in the region, on prospects of a new round of trade talks between China and the US, but extended weekly losses amid mixed economic data.

The blue-chip CSI300 index gained 0.2 percent to 3,242.09 points at close on Friday, but was down 1.1 percent for the week. Meanwhile, the Shanghai Composite Index fell 0.8 percent over the previous week, marking its third consecutive weekly fall.

China’s growth looks set to cool in coming months, with a barrage of August economic data doing little to dispel views that domestic demand is softening and government support measures will take some time to kick in.

Last week, the world’s two largest economies appeared to be making progress on trade. The US Treasury has invited senior Chinese officials, including Vice Premier Liu He, for more talks.

However, a senior administration official told Reuters on Saturday that US President Donald Trump is likely to announce new tariffs on about $200 billion worth of Chinese imports as early as Monday, ahead of the trade talks.

Such uncertainties in China-US trade talks may weigh on the A-share market this week, said some securities analysts who predicted that investors are likely to be prudent.

Still, analysts think that market sentiment could be lifted up by the news that China will further open up its stock market to foreign investors.

Starting from Saturday, qualified foreigners can now apply for A-share securities accounts by submitting application materials, including an application form for starting securities accounts, a passport and its copy, and proof of employment issued by a domestic institution.

So far this year, the Shanghai stock index is down 18.9 percent while the CSI300 has fallen 19.6 percent.