China stocks close lower after US tariffs
SHANGHAI, May 15 (Reuters) - Mainland China shares ended lower on Wednesday, pressured by U.S. President Joe Biden's decision to levy fresh tariffs on Chinese goods.
** U.S. President Biden on Tuesday unveiled steep tariff increases on an array of Chinese imports, including electric vehicle (EV) batteries, computer chips and medical products, risking an election-year standoff with Beijing as he woos American voters who give his economic policies low marks.
** The tariffs are considered as a fresh sign of escalations in Sino-U.S. relations, which have long been one of the key factors influencing Chinese financial markets.
** "We are more concerned China may face similar trade-restrictive measures from other regions," analysts at Nomura said in a note.
"The EU and UK account for about 40% of China's EV exports in 2023, the EV sector may face increased pressure if Europe follows the U.S. and imposes high punitive tariffs on Chinese EVs."
** At the close, the Shanghai Composite index was down 0.82% at 3,119.90.
** The blue-chip CSI300 index was down 0.85%, with the real estate index up 2.21%.
** Property shares outperformed the market after Bloomberg reported, citing unnamed sources, that China is considering a proposal to have local governments across the country buy millions of unsold homes, an attempt to rescue the property market.
** The market did not react much to China's central bank's decision to leave a key policy rate unchanged while rolling over maturing medium-term lending facility (MLF) loans on Wednesday, in line with market expectations.
** Around the region, the MSCI's Asia ex-Japan stock index was firmer by 0.51%, while Japan's Nikkei index closed up 0.08%.
** At 0704 GMT, the yuan was quoted at 7.2237 per U.S. dollar, 0.13% firmer than the previous close of 7.233.
** Markets in Hong Kong are closed on Wednesday for a public holiday.
(Reporting by Shanghai Newsroom; Editing by Mrigank Dhaniwala and Sohini Goswami)
