JSE drops as US mulls delisting some Chinese companies

The JSE was lower on Monday morning, in line with some global markets as news that the US may consider limiting its capital flows to China weighed on sentiment.

Reports that the US administration is considering restricting capital flows into China, including possibly delisting Chinese companies from US stock exchanges, dampened investor appetite for riskier assets.  

“While no confirmation was received on this front, the idea of the trade war moving into a war on capital flows will lead to a risk-off environment. Whether the White House would implement such restrictions or just use them as a tool to gain leverage in the upcoming trade negotiations, the message sent was not received well by financial markets,” FXTM chief market strategist Hussein Sayed said.   

Earlier, the Shanghai Composite was down 0.92% and Japan’s Nikkei 225 0.56% while Hong Kong’s Hang Seng was up 0.53%

At 10.40am, the JSE all share was down 0.38% to 55,000 points and the top 40 was 0.29% lower. Banks were down 0.88% and gold miners 2.2%.

Grit Real Estate said on Monday that its headline earnings per share increased 27.4% to 8.09c US dollar cents in the year ended June. Its share price was unchanged at R16.75.

The SA Revenue Service is set to release balance of trade figures for August on Monday.

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