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China stocks ended lower on Thursday as months of see-sawing US-Sino trade friction stoked uncertainties over the country's economic growth, prompting investors to take a cautious stance.
The blue-chip CSI300 index ended down 1.2 per cent at 3,536.25 points, while the Shanghai Composite Index closed down 0.7 per cent at 2,882.23 points.
China's state planner had vowed on Wednesday to prevent extensive job losses across the economy and keep unemployment below existing thresholds as trade friction with the United States created uncertainty in the labour market.
** “The escalating Sino-US trade frictions have brought uncertainties to our country's economic development and especially to employment stability,” Ha Zengyou, a senior official from the state planner, told reporters.
US President Donald Trump had accused China on Wednesday of targeting American farmers in a “vicious” way and using them as leverage to get concessions on trade a day after the administration announced a $12-billion farm aid package.
The prospect of weaker growth has prompted a loosening of fiscal policy in China as authorities seek to head off a slowdown. Most recently, China's central bank gave notice to some domestic banks that it would ease a capital requirement to support lending.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.06 per cent, while Japan's Nikkei index closed down 0.12 per cent . At 0704 GMT, the yuan was quoted at 6.7837 per US dollar, 0.29 per cent weaker than previous close of 6.7638.
The largest percentage gainers in the main Shanghai Composite index were Lotus Health Group Co, which ended up 10.24 per cent, followed by Tianjin Songjiang Co Ltd, which closed 10.18 per cent higher and Heilongjiang Interchina Water Treatment Co Ltd, which closed up 10.1 per cent.
The largest percentage losses in the Shanghai index were Shanghai Tianyong Engineering Co Ltd down 9.99 per cent, followed by Great-Sun Foods Co Ltd losing 9.93 per cent and Jiangsu New Energy Development Co Ltd down by 9.19 per cent.
So far this year, the Shanghai stock index is down 12.8 per cent, the CSI300 has fallen 12.3 per cent while China's H-share index listed in Hong Kong is down 6.1 per cent. Shanghai stocks have risen 1.25 per cent this month.
About 16.84 billion shares were traded on the Shanghai exchange, roughly 122.6 per cent of the market's 30-day moving average of 13.73 billion shares a day. Volume in the previous trading session was 16.78 billion.
As of 07:05 GMT, China's A-shares were trading at a premium of 18.11 per cent over the Hong Kong-listed H-shares. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 12.63 as of the last full trading day, while the dividend yield was 2.6 per cent. So far this week, the market capitalisation of the Shanghai stock index gained 2.69 per cent to 30.77 trillion yuan.
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