US-listed Chinese firms trade lower amid trade concerns

8th April, 2018 09:55:09 printer

NEW YORK: U.S.-listed Chinese companies traded mostly lower on Friday, with nine of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on a downbeat note, as escalating trade tensions between China and the United States dented investor sentiment.

Shares of Yum China and shares of Alibaba, dropped 3.63 percent and 2.93 percent respectively, leading the laggards in the top 10 stocks of the index, while shares of BeiGene edged up 0.08 percent as the only advancer among the 10 stocks, reports Xinhua.

Shares of and shares of Baidu, another two Chinese tech giants listed in the U.S. equity market, fell 2.39 percent and 2.55 percent respectively on Friday.

U.S. stocks plunged on Friday, with all three major indices tumbling over 2 percent, after U.S. President Donald Trump said Thursday that he had asked the U.S. Trade Representative to consider "100 billion U.S. dollars of additional tariffs" on Chinese products.

The moves came after both sides earlier this week unveiled a list of products worth 50 billion dollars imported from the other side that will be subject to higher tariffs.

China will fight "at any cost" and take "comprehensive countermeasures" if the United States continues its unilateral, protectionist practices, a spokesperson with the Chinese Ministry of Commerce said Friday.

At the close, the Dow Jones Industrial Average erased 572.46 points, or 2.34 percent, to 23,932.76. The S&P 500 decreased 58.38 points, or 2.19 percent, to 2,604.46. The Nasdaq Composite Index was down 161.44 points, or 2.28 percent, to 6,915.11.

The Cboe Volatility index, widely considered the best fear gauge in the stock market, surged 13.46 percent to 21.49 on Friday.

As of Thursday, the S&P U.S. Listed China 50 index stood at 3,042.31, marking a 1.58-percent decrease for the year-to-date returns.