While the Shanghai Stock Exchange’s main stock index rose slightly on Friday, stocks fell the most in two months over the past week. Rising tensions between the United States and China over economic relations are to blame.
The Shanghai Composite index rose 0.79 percent on Friday, but that was not enough to erase the losses it has suffered over the past week. The index erased 2.83 percent from Monday through Friday. The CSI300 index, which includes so-called blue-chip titles, even wrote down three percent in the past week. Although it rose 1 percent on Friday.
The financial sector subindex fell 0.22 percent, shares of consumer goods companies rose 1.53 percent, real estate titles fell 1.22 percent and the healthcare sector firmed 1.79 percent. The smaller of China’s two main stock exchanges, Shenzhen, ended the week with growth of more than two percent. Even so, it was not enough to avert a negative weekly balance sheet. The ChiNext technology index weakened the most, writing off more than seven percent last week. That’s the worst weekly result since March this year.
According to experts, the cause of a bad week on Chinese exchanges is the rising tensions between the US and China, not only in trade, but also in other economic relations. Investors perceive higher risk in stocks traded in China, so they are looking for safer ports for their free funds.