China markets fall as deadlock in trade war negotiations prompts cautious trading
- Analyst expects market to consolidate and continue fluctuating as long as the trade talks continue
Chinese stocks fell on Monday as market sentiment turned cautious amid renewed concerns over the US-China trade war, with financial institutions leading the decline.
The Shanghai Composite Index fell 1.2 per cent to 2,903.71. The Shenzhen Component Index lost 1.4 per cent, and the CSI 300, which tracks large companies listed in Shanghai and Shenzhen, dropped 1.7 per cent. The Nasdaq-style ChiNext Index declined 2 per cent.
The Hong Kong market was closed for a public holiday and will resume trading on Tuesday.
A deadlock in negotiations on Monday weighed on the market sentiment, with Chinese official media saying the Chinese economy will not be “weakened by a little tariff increase”.
“The market will continue consolidating and swinging as long as the negotiation goes on” in the near term, analysts at Chinese brokerage Industrial Securities, led by Wang Delun, wrote in a report on Monday.
“There’s now greater uncertainty as we enter the final stage of the trade negotiation.”