November 23, 2018 / 7:35 AM / 6 months ago

Shanghai stocks fall most in 5 weeks on fading hopes from Trump-Xi meeting

SHANGHAI, Nov 23 (Reuters) - Shanghai stocks fell the most in five weeks on Friday amid worries over China’s economic growth and doubts over chances of President Xi Jingping and U.S. President Donald Trump achieving a de-escalation in the Sino-U.S. trade war when they meet next week.

Shanghai Composite Index slumped 2.5 percent to 2,579.48 points, the biggest one-day percentage loss since October 18. The blue-chip CSI300 index fell 2.2 percent, to 3,143.48 points.

China’s start-up board ChiNext slumped 3.3 percent, despite a slew of recent government measures to aid small listed firms.

Stocks fell across the board, with property and materials among the biggest casualties.

The market had stabilized recently on hopes that Xi and Trump could soothe tensions over trade when at their talks during a G20 summit in Buenos Aires next week, but there has been little sign of any change in stance.

On Tuesday, the United States said China had failed to alter “unfair” practices at the heart of the trade conflict.

Further dimming market hopes, the Wall Street Journal reported on Thursday that the U.S. government is trying to persuade wireless and internet providers in allied countries to avoid telecommunications equipment from China’s Huawei Technologies.

“Recent developments have eroded expectations of a trade deal at the Xi-Trump meeting,” said Yu Bin, investment advisor at Zhongtai Securities.

Investors are also worried about China’s economic growth. Li Bing, investor advisor at Xiangcai Securities, said: “the economy is in a downcycle. Fresh money doesn’t want to come in, while many agonized investors in the market want to get out.” (Reporting by Shanghai Newsroom; Editing by Simon Cameron-Moore)

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