HONG KONG: The worsening trade war between Beijing and the Washington is prompting investors to ditch Chinese shares traded in the U.S. at a speed not seen since the global financial crisis.The S&P/BNY Mellon China ADR Index has plunged 15% in May, putting it on track for its worst monthly performance since October 2008.Social media firm Weibo Corp., online media company Sina Corp. and Internet search firm Baidu Inc. have all declined more than 30%. The index compiler is increasing weightings of Chinese mainland-listed companies in its gauges, which are already heavily dominated by overseas-traded Chinese firms.Chinese companies have contributed to more than a quarter of this month’s declines on the MSCI Emerging Markets Index, led by Tencent Holdings Ltd.A slumping yuan is adding to investor pain by reducing the value of Chinese company earnings when converted into dollars.The onshore Chinese currency is down 2.5% this month, while the offshore rate is 2.8% lower.There is so far little sign that things will get better quickly. China blamed Washington for wrecking trade talks and insisted the U.S. must alter its "wrong practices” before negotiations can resume. China Tower Corp Ltd. -- a key player in the country’s next-generation telecom networks -- has lost 18%. The race for 5G supremacy has also been a contentious factor in China’s relationship with the U.S. - Bloomberg

Source: The Star May 24, 2019 02:49 UTC