The Shanghai Composite Index shed 1.37 percent to close at 2,875.81 points. Shares of telecommunication firms, semiconductor companies and
electronic firms were among the biggest decliners.
Guangdong Super Telecom Co tumbled 9.70 percent to 25.97 yuan (US$4), JiLin Sino-Microelectronics Co lost 7.14 percent to 6.11 yuan
and Jiangsu Changjiang Electronics Technology Co fell 6.32 percent to
15.86 yuan.
Investor appetite was weak amid lingering worries over rising China-US trade tensions.
The Ministry of Commerce said yesterday that if the US chooses to impose tariff on Chinese goods and distort the global trading order
leading to unfair trade, China will take comprehensive countermeasures
to protect the interests of the country and the people.
“In early June, the two countries conducted discussions on agriculture and energy sectors in Beijing. China and the US both agreed
to talk further on manufacturing and services industries as well as
structural problems. However, the US escalated trade tensions and China
has to response,” said Gao Feng, a ministry spokesman.
Gao Ting, head of China Strategy at UBS Securities, pointed out that “Sino-US trade tensions could further escalate” and this “could have a
long-term negative impact on production and investment activities.”
