Shanghai stocks plumbed a 20-month low on Friday as investors worried rising trade tensions with the United States could add pressure to the country’s economic growth.
The blue-chip CSI300 index fell 0.5 percent to 3,753.43, the Shanghai Composite Index hit its lowest since September 2016 before ending down 0.7 percent at 3,021.90. Both indexes were down for the third session in a row.
For the week, SSEC was down by 1.5 percent, while CSI300 slipped 0.7 percent. Nearly 80 stocks tumbled the maximum allowed 10 pct on Friday, led by tech firms, in particular small-cap companies. China’s tech-heavy start-up board ChinextP dropped 1.9 percent to a four-month low. There is a long-term correction in the valuations for those small-cap firms, as they are still overvalued without solid results,” said Zhu Junchun, an analyst with Lianxun Securities.
Source : Reuters