Chinese Stocks Fall as Yuan Falls to 11-Year Low

Chinese shares fell more than 1% as the yuan weakened, following growing trade tensions between Washington and Beijing.

The benchmark “Shanghai Composite” fell 1.17% at 2863 points, and “Shenzhen Composite” fell 0.76% to 1,566 points.

The Chinese currency fell 0.7% to 7.1467 yuan against its US counterpart, at 11:59 am Istanbul time at its lowest level in 11 years.

The won-dollar exchange rate surged. On the day, the won-dollar exchange rate closed 7.2 percent to 1217.8 in the foreign exchange market.

On the 26th, the KOSPI index closed trading at 1916.31, down 31.99 points (1.64%) from the previous trading day. The index started at 1915.34, 32.96 points (1.69%) lower than the battlefield, and then rose to the 1920s and finished the market.

Foreigners sold net sales of 14.4 billion won. Individuals and institutions were superior to buy W549bn and W716bn, respectively.

US-China trade conflict intensified during the weekend, raising market uncertainty. China announced on Tuesday that it will impose 5-10% tariffs each month on an additional 5078 US products worth $ 75 billion. In addition, the soybean tariff rate increased from 25% to 30%, and from December 15, it will resume the 25% punitive tariff on all US-made cars.

The United States also foretold additional tariffs. The tariff on China’s $ 300 billion in Chinese products, which was supposed to be applied from September 1, will be increased from 10% to 15%, and the tariff on 25% of the previous $ 250 billion will be raised to 30% from October 1. As the two countries’ reactions intensified, instability in the global financial market has increased.

The world-renowned Chairman of the US Federal Bank, Jerome Powell, said that Jackson Hall’s speech had little impact on financial markets. Although the door to further rate cuts has been opened, it has not met the expectations. At the same time, the possibility of further interest rate cuts, which had been halted, also lost its stimulus, as the US-China tariff news continued.

Park So-yeon, a researcher at Korea Investment & Securities, said, “Trump has responded to China’s retaliation tariff, and the possibility of withdrawal or suspension of tariffs has declined significantly. Situation. ”

The KOSDAQ index closed at 582.91, down 26.07 points (4.28%) from the previous trading day. The index started at 594.25, down 14.73 points (2.42%) from the battlefield and drew a downward sloping curve.

Foreigners and institutions sold 1136 billion won and 92 billion won respectively. The individual had a buy advantage of W19bn.

The won-dollar exchange rate surged. On the day, the won-dollar exchange rate closed 7.2 percent to 1217.8 in the foreign exchange market.

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