China and Hong Kong stocks fall amid trade talk uncertainty
Investors are doubtful that a deal will be struck at the high-stakes meeting between the US and China at the G20 summit in Argentina next week
China and Hong Kong stocks fell on Friday amid worries about economic growth, and uncertainty around Sino-US trade talks.
The CSI 300 index fell 1.4 per cent while the Shanghai Composite Index lost 1.6 per cent. The CSI 300 is a capitalisation-weighted stock market index designed to replicate the performance of top 300 stocks traded in the Shanghai and Shenzhen stock exchanges.
In Hong Kong, the Hang Seng index dropped 0.3 per cent whereas the Hong Kong China Enterprises Index lost 0.6 per cent.
Investors are doubtful that a deal will be struck at the high-stakes meeting between US President Donald Trump and his Chinese counterpart Xi Jinping during the G20 summit in Buenos Aires, Argentina, next week.
Although Mr Trump said on Thursday that he hoped he can make a deal with China when he meets Mr Xi, the US administration shows little sign of backing down on its demands and rhetoric. Meanwhile, China said trade talks between the US and China should be equal and mutually beneficial.
Investors are also worried about China's economic growth.
“The economy is in a downcycle. Fresh money doesn't want to come in, while many agonising investors in the market want to get out,” said Li Bing, investor advisor at Xiangcai Securities.
On Friday morning, China's CSI300 financial sector sub-index was lower by 1.04 per cent, while the consumer staples sector, real estate index and healthcare sub-index were down by 1.17, 2.15 and 1.05 per cent respectively.
Updated: November 23, 2018 12:20 PM