China stocks slip as markets reopen to escalating US tensions

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The yuan weakened 0.4% to 7.090 per US dollar while its offshore counterpart strengthened 0.26%.

Moves were relatively muted, in what analysts saw as a sign of confidence over China’s efforts to maintain market stability and its ability to recover from the economic impact of the pandemic. The CSI 300 Index of stocks fell 0.5% as of 10:40 a.m. local time. The yuan weakened 0.4% to 7.090 per U.S. dollar while its offshore counterpart strengthened 0.26%.

"Market sentiment isn’t very badly affected by the verbal fight between China and the U.S.,” said Zhou Hao, an economist at Commerzbank AG in Singapore."The hope remains that China will commit to the trade deal. Also, it’s widely known that for Chinese officials, market stability is very important.” "I don’t expect to see a strong rally in A shares and the market is likely to stay range-bound,” said Ma Cheng, chairman at Shenzhen Juze Investment Management Co., adding that the main opportunities remained in specific sectors rather than the overall market.

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