China's farm stocks defy Sino-U.S. trade rout on local demand expectations

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China's farm stocks defy Sino-U.S. trade rout on local demand expectations
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The fresh escalation in the long-running Sino-U.S. trade dispute prompted a shar...

SHANGHAI - The fresh escalation in the long-running Sino-U.S. trade dispute prompted a sharp selloff in Chinese markets last week with the yuan and banking and tech stocks hit particularly hard though some sectors, like farming, managed to outperform.

Foreign investors are a key part of the country’s equities market, holding a total of 1.68 trillion yuan worth of A-shares as of end-March, up from 1.15 trillion yuan at end-2018, according to latest PBOC data. Chinese banks cut back new lending in April after a record first quarter that sparked fears of more bad loans, but analysts say the central bank will have to sustain policy support through the year.

China’s No. 2 telecom equipment maker ZTE Corp had tumbled as much as 67.4% in 2018 on a U.S. export ban that threatened to put it out of business.

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