China stocks set for weekly losses on worries over policy tightening, Sino-U.S. tensions
Friday, August 14, 2020       13:13 WIB

August 14, 2020 / 11:31 AM
* SSEC -0.2%, CSI300 0.1%, HSI -0.2%
* HK->Shanghai Connect daily quota used 2.3%, Shanghai->HK daily quota used 1.1%
* FTSE China A50 +0.2%
SHANGHAI, Aug 14 (Reuters) - China stocks were little changed on Friday but were on track to post weekly declines, led by technology shares, as worries over policy tightening and rising Sino-U.S. tensions dented sentiment.
By the midday break, the CSI300 index rose 0.1% to 4,640.68 points, while the Shanghai Composite Index fell 0.2% to 3,315.45 points.
The tech-heavy start-up board ChiNext added 0.2%, while the newly-launched SSE 50 index slipped 0.5%.
For the week, CSI300 was down 1.4%, while SSEC shed 1.2%, poised to snap a three-week winning streak.
Sino-U.S. tensions continued to weigh on sentiment, as investors await a meeting between top U.S. and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal.
Tech firms led the retreat this week. ChiNext was down 4.5% for the week, set for its steepest weekly drop in nearly five months, while the 50 index sank 4.3%.
"Investors are now hesitant to buy stocks with lofty valuations and substantial gains this year, and prefer to seek opportunities in cheap stocks with safety margin including those in traditional industries," said Xia Tian, managing director at Shanghai-based asset management firm Minvest.
Despite the week's correction, ChiNext and 50 still both gained nearly 50% so far this year.
China's recovery had been gathering pace after the pandemic paralysed huge swathes of the economy as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.
Monetary policy could be marginally tightening going ahead given the extent of China's economic recovery in the first half, said Xia.
China's retail sales unexpectedly fell in July from a year ago while the comeback in factory output was slower than forecast amid signs the recovery in the world's second-largest economy remains fragile.
In Hong Kong, the Hang Seng index dropped 0.2%, to 25,183.93, while the Hong Kong China Enterprises Index gained 0.3%, to 10,270.30. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Ramakrishnan M.)

Sumber : Reuters
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