China has experienced encouraging manufacturing data and couples of positive IPO, as reported by CNN. Yet, despite that situation, most of China stocks are still heading south.
That signals investors’ are still concerning upon the escalating US-China trade tension.
Raising manufacturing activity
A private survey shows The Caixin Purchasing Managers Index got its quickest expansion pace in the last 19 month. It has reached 51.4 in September. That number increased from 50.4 on 4 August.
Besides, government official PMI for September is also increasing 49.8 from the 49.5 in August. The number, however, is a 50-point level lower from the level indicates growth over the previous month.
Chinese companies’ shares
Since the United States launched investigations into some Chinese companies and even sanctioned some of them, their shares are dropping.
Worst of all, The U.S. also consider delisting Chinese companies from American stock markets.
China’s Shanghai Composite Index (SHCOMP) dropped 0.9%. However, Hong Kong’s Hang Seng Index (HSI) reversed opening losses and successfully traded higher. The index closed up 0.5% as it got help by a blockbuster IPO.
Another positive move is coming from Budweiser APAC, the Asia unit of the world’s largest brewer AB InBev (BUD). Its shares jumped more than 4% on its first trading day in Hong Kong.
Smartphone maker, Transsion, also surged more than 60% on its first-day trading.
The dropping shares mostly happen to Chinese technology companies as they are being investigated by the US International Trade Commission, an anti-trust body. These companies are facing patent infringement on chip products.
Also read: Chinese Economic Slowdown Deepens
Qingdao Hisense Electric, a major Chinese appliance and electronics maker, lost 3.3% in Shanghai. Besides, TCL Electronics tumbled 2.7% in Hong Kong. Followed by its parent, TCL Corp, also dropped 1.9% on the Shenzhen market.
Lenovo (LNVGF) fell 0.8% in Hong Kong. Its parent company, Legend Holdings, also dropped by 1.5%.
Cosco Shipping Energy Transportation, a unit of Chinese conglomerate Cosco Group, plummeted nearly 22% in Hong Kong.
