The stock markets of China and Hong Kong have ended the session ”in the red”
The Chinese stock market has dropped as a result of Wednesday, following the securities of the commodity sector. Due to the anxiety about the weakening of the RMB the mood of investors has worsened and Chinese assets have become less attractive for the investment.
CSI300 index, which fixes the value of securities of the largest companies traded in Shanghai and Shenzhen, has fallen by 0.2 percent and finished the session at around 3.300,01 points. The index of the Shanghai Stock Exchange Shanghai Composite has dropped by 0.2 percent, closing the session at the mark of 3.058,50 points.
During the session on Wednesday the yuan has reached its lowest level for 6 years, which caused the concern about the continuing depreciation of the Chinese currency against the background of the US dollar strengthening. The strengthening is based on expectations of the increasing interest rates by the Federal Reserve in December. Subsequently, the yuan has reimbursed the incurred losses.
Most sectors ended the bidding process with the negative dynamics. The shares of the commodity sector have become the leader of the decline. The shares of the real estate sector regained their positions after the middle of the session and have finished “in the green”.
Hong Kong stock indexes have also fallen on Wednesday. At the same time the global markets are experiencing the growing uncertainty due to the upcoming presidential elections in the United States, the probable increase in rates by the Fed and difficult negotiations on Brexit.
Hang Seng, the index of the Hong Kong Stock Exchange has fallen by 0.6 percent and has become equal to 23.407,05 points. The index of the Chinese companies that are trading in Hong Kong has lost 1.3 percent, ending the trade at the mark of 9.673,20 points.
Thus, all major sectors have sagged. The papers of the commodity sector companies have dropped more than others.