Biden rumored to cancel some tariffs on Chinese goods, market optimism dissipated | Anue Juheng – A shares

China’s three major A-share indexes closed down on Tuesday (5th), and the Shanghai index fell less than 0.1%. It is rumored that US President Biden will cancel tariffs on Chinese goods as soon as this week, but may launch a new investigation on industrial subsidies. Finally, the market optimism dissipated.

Securities Times reported that the Shanghai Composite Index edged down 0.04% to 3,404.03 points on Tuesday, the Shenzhen Component Index fell 0.41% to 12,973.11 points, and the ChiNext Index fell 0.34% to 2,825.13 points.

The total turnover of the two cities (the same below) was 1.1810 trillion yuan, breaking the trillion for the ninth consecutive trading day, and the net outflow of “northbound funds” was 1.348 billion yuan.

Food and beverages, automobiles, home appliances, brewing, brokerages, pharmaceuticals, agriculture, real estate and other sectors fell, while coal, electricity, gas, steel and other groups rose.

Hong Kong’s Hang Seng Index closed up 0.1%, while the Hang Seng Technology Index fell 0.47%.

Chinese Vice Premier Liu He held a video call with U.S. Treasury Secretary Yellen on Tuesday at an appointment.

Bloomberg reported that Biden announced as soon as this week that he would lift tariffs on some Chinese consumer goods and could launch a new investigation into industrial subsidies that could eventually lead Washington to impose additional tariffs in strategic areas such as technology, according to people familiar with the matter. Multiple tariffs.

Biden has not made a final decision and may delay the announcement, the sources said.

“The market may be reacting positively because at this point we are eager for any sign of positive news, but we don’t think the move will have a significant impact on global growth and inflation,” said Charu Chanana, senior market strategist at Saxo Capital Markets.

Barclays said improved U.S.-China trade relations were also “not a yuan booster” for the yuan. If both China and the U.S. lift the tariffs, China’s current account surplus will increase by about $90 billion, implying a 1.8 percent appreciation of the yuan. However, the impact on the renminbi is likely to be smaller as Washington may partially remove punitive tariffs.

Barclays economists believe that China’s central bank, which seeks exchange rate stability, may also prevent the yuan from appreciating sharply.


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