SHANGHAI, Aug 7 – China stocks ended lower on Friday after the Trump administration unveiled a plan to ban U.S. transactions with ByteDance’s TikTok and Tencent-owned WeChat, but posted weekly gains on upbeat trade data.
** The blue-chip CSI300 index dropped as much as 2.6% before ending 1.2% lower at 4,707.93, while the Shanghai Composite Index lost 1% to 3,354.04 after falling 2.3% earlier in the session.
** U.S. President Donald Trump announced on Thursday sweeping bans on U.S. transactions with China’s ByteDance, the owner of video-sharing app TikTok, and Tencent 0700.HK, the operator of WeChat, starting in 45 days.
** Adding to pressure, Trump administration officials have also urged the president to delist Chinese companies that trade on U.S. exchanges and fail to meet U.S. auditing requirements by January 2022.
** Tech stocks fell across the board on Friday. Shenzhen’s tech-heavy start-up board ChiNext sank 2.3%, while the newly launched STAR 50 index ended down 3%.
** Though some analysts argue the impact from the Sino-U.S. relations on the A-shares is very limited now, as the market has become quite prepared for the “normalized” tensions.
** “Unless a hot war breaks out between the two countries, investors need not worry too much about the tensions,” said Yan Kaiwen, an analyst with China Fortune Securities.
** For the week, major indexes still posted gains as investors cheered more signs of economic recovery and Bejing’s continued policy support.
** SSEC added 1.3% for the week, while CSI300 was up 0.3%.
** China’s economy appeared to be gathering pace in July as exports rose the most this year while some raw material imports hit record highs, adding to hopes for a more sustained recovery.
** China’s central bank said on Thursday it would make its prudent monetary policy more flexible and targeted, and keep liquidity appropriately ample to support economic recovery. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Rashmi Aich)