June 4, 2020 / 5:15 AM / a month ago

China stocks slip on Sino-U.S. tensions after Trump administration bars flying to U.S.

BEIJING/SHANGHAI, (Reuters) - China stocks pared early gains on Thursday due to concerns over rising Sino-U.S. tensions after the Trump administration barred Chinese passenger carriers to fly to the United States. ** At the midday break, the Shanghai Composite index was down 0.21% at 2,917.17, after opening 0.29% higher. ** China’s blue-chip CSI300 index was down 0.16%, with its financial sector sub-index lower by 0.28%, the consumer staples sector up 0.4%, the real estate index down 0.61% and the healthcare sub-index down 0.07%. ** U.S. President Donald Trump’s administration on Wednesday barred Chinese passenger carriers from flying to the U.S. starting on June 16, while the Civil Aviation Administration of China (CAAC) allowed more qualifying foreign carriers to fly into the mainland on Thursday.

** Shares in dual-listed China Southern Airlines Co Ltd 600029.SS 1055.HK fell 0.38%, while Air China Ltd 601111.SS0753.HK retreated 1.62% by mid-day break. ** The CSI300 transport index .CSI000957 declined 0.68% by noon. ** The U.S. is also expected to designate at least four additional state-run Chinese media outlets as foreign embassies, increasing restrictions on their operations on American soil, Reuters reported.

** The smaller Shenzhen index was up 0.06% and the start-up board ChiNext Composite index was higher by 0.11%. ** Chinese H-shares listed in Hong Kong fell 0.24% to 9,943.24, while the Hang Seng Index was down 0.11% at 24,298.60.

** Mainland shares have priced in previous stimulus measures and the benchmark are like to fluctuate around the 2,900 point level before further major moves such as rate cuts, said Zhang Gang, analyst with China Central Securities.

** H-shares investors are also seem to be taking a wait-and-see approach on Thursday instead of following the rise of global markets, Zhang added, due to uncertainties of future developments.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.24% while Japan’s Nikkei index was up 0.22%. ** The yuan was quoted at 7.1256 per U.S. dollar, 0.13% weaker than the previous close of 7.1166.

Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai; Editing by Rashmi Aich

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