China stocks ended lower on Friday, weighed down by concerns over hawkish comments from top Federal Reserve officials, and U.S. delisting risks for Chinese companies.To get more shanghai stock market news, you can visit shine news official website.
The blue-chip CSI300 index fell 1.8%, to 4,174.57, while the Shanghai Composite Index lost 1.2%, to 3,212.24.
The U.S. public company accounting regulator said on Thursday that it continued to engage with Chinese regulators about getting access to their auditors' records, but it remained unclear if the Chinese government would grant the access required by a new U.S. listing law.
China's securities regulator had said earlier this month that it was confident it would reach an agreement with U.S. counterparts on securities supervision, after U.S.-listed Chinese stocks tumbled as the first Chinese firms to be potentially de-listed were named.
Last week, Chinese Vice Premier Liu He said Beijing would roll out support for the domestic economy and financial market, sending Chinese and Hong Kong stocks higher initially.
Following the speech, "some actions have been taken by different agencies but the market is still waiting for more concrete actions in monetary, ADRs, real estate, big tech, etc.," Citi analysts said in a note.
Chicago Fed President said on Thursday the Fed needed to raise interest rates "in a timely fashion" this year and in 2023 to curb high inflation before it was embedded in U.S. psychology and became even harder to get rid of.
Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect
The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are cross-border investment channels that connect the Hong Kong Stock Exchange with the mainland market. Under the program, investors in each market are able to trade shares on the other market using their local brokers and clearinghouses. The Shanghai-Hong Kong Stock Connect was officially launched on November 17, 2014, and the Shenzhen-Hong Kong Stock Connect was officially launched on December 5, 2016. Both channels use the RMB for transactions.
After the smooth implementation of the Shanghai-Hong Kong stock connect and Shenzhen-Hong Kong stock connect, the internationalization level of the mainland stock market has been greatly improved, and nearly RMB 2 trillion (US$308 billion) of mainland capital has been brought to the Hong Kong market, according to Cai’s speech at the Boao Forum this year. Hypothetically, if we regarded the Shanghai/Shenzhen/Hong Kong Stock Connect as a single independent exchange, its trading volume in the first quarter of 2021 would rank seventh among the global exchanges.
Shanghai-London Stock Connect
The Shanghai-London Stock Connect was launched on June 17, 2019, at the London Stock Exchange (LSE) to facilitate a new level of capital cooperation between China and the UK, two of the world’s largest economies. Under the Shanghai-London Stock Connect, qualified companies satisfying the listing qualifications in both markets may issue depositary receipts and list and trade on the other markets.
Political tension between the two countries came to a head in 2019 due to the British government’s response to anti-government protests in Hong Kong, leading to rumors that the Stock Connect program had been halted. However, despite rumors that the Shanghai-London Stock Connect was suspended, the China Securities Regulatory Commission affirmed that the Connect was in fact operating normally since its inception.