China stocks slip; investors cautious amid Sino-US trade talks

SHANGHAI: China stocks closed slightly lower on Tuesday amid investor caution as US and Chinese officials seek to reach a trade deal in Beijing.

The blue-chip CSI300 index fell 0.2 per cent, to 3,047.70 while the Shanghai Composite Index lost 0.3 per cent to 2,526.46.

US Commerce Secretary Wilbur Ross predicted on Monday that Beijing and Washington could reach a trade deal that "we can live with" as dozens of officials from the world's two largest economies resumed talks in a bid to end their trade dispute.


China's foreign ministry said Beijing had the "good faith" to work with the United States to resolve trade frictions, but many analysts doubt the two sides can reach a comprehensive agreement on all of the divisive issues before a March deadline.

There seemed to be scant market reaction to North Korean leader Kim Jong Un's visit in China. The CSI300 financial sector sub-index was lower by 0.45 per cent, while the healthcare sub-index was up 0.37 per cent. The smaller Shenzhen index ended down 0.12 per cent and the start-up board ChiNext Composite index was weaker by 0.36 per cent.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.21 per cent while Japan's Nikkei index closed up 0.82 percent.

At 07:33 GMT, the yuan was quoted at 6.8574 per US dollar, 0.1 per cent weaker than the previous close of 6.8505. The largest percentage gainers on the main Shanghai Composite index were Jinzhou Port Co Ltd, up 10.07 per cent, followed by Pengqi Technology Development Co Ltd, gaining 10.06 per cent, and Zhejiang Tiantai Xianghe Industrial Co Ltd, up by 10.03 per cent.

The largest percentage losers on the Shanghai index were Wuxi New Hongtai Electrical Technology Co Ltd, down 9.98 per cent, followed by Pengqi Technology Development Co Ltd , losing 9.82 per cent, and BTG Hotels Group Co Ltd , down by 7.18 per cent.