Shanghai Composite slips from one-month high ahead of Trump’s conference

Shanghai Composite

Chinese stocks’ record high is short-lived.

China’s main benchmark, the Shanghai Composite, quickly separated from its one-month record high claimed in the previous session as it fell on Wednesday before the scheduled news conference of President-elect Donald J. Trump on Thursday, in which he is expected to lay his trade and economic policies.

Not So Friendly

Dragged down by the declines in transport and consumer stocks, the Shanghai Composite Index finished the Wednesday session on a low note, giving up 0.76%, to close at 3, 137.63, down from its one-month high of  3171.24.

The index has surged to an intraday high of 3 167 but gave up most gains on the rest of the day, which comprised a trading volume of 178 million shares.

Chinese markets bucked the bullish trend set in the Asia Pacific yesterday as its counterparts, including Japan’s Nikkei, South Korea’s Kospi and Australia’s ASX 200, finished impressively higher.

Investors were nervous on Wednesday and made some profit takings, fearing some headwinds might hound the stock market, as the former famous business tycoon and now US President, Trump, gears up for his much-awaited news conference, which will talk about his economic policies.

Trump initially commented that he would tag the mainland China as the currency manipulator should he take office as the US president and will impose tariffs on US imports from the republic.

These harsh remarks dented the sentiment of the market and investors believed that the upcoming policies of Trump will not be so friendly with the Chinese currency and its equity market.


Leave a Reply

Your email address will not be published.