Chinese stocks hit record low in four years, according to Trump, who is preparing new rates



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* SSEC falls 1.1% from the lowest since November 27, 2014

* CSI300 ends 1.1 pct

* $ 200 billion tariff on US imports from China could arrive Monday

* The central bank wants to maintain stable money market rates

SHANGHAI, Sept. 17 (Reuters) – China's leading Shanghai index, Shanghai Composite, fell on Monday nearly four years ago, according to US President Donald Trump.

The Shanghai Composite Index fell 1.1% to 2,651.79 points, its lowest level since November 27, 2014. The first-rate CSI300 index also fell 1.1%, at 3,204.92 points.

In Hong Kong, the Hang Seng index fell 1.3% in the late afternoon and the China Enterprises index fell 1.2%.

A senior Trump administration official told Reuters that Trump would announce the new rates as early as Monday. China has pledged to retaliate against any new US tariff measure and may refuse to participate in other negotiations if new tariffs are announced.

On Monday, the widely circulated newspaper Global Times, published by the ruling Communist Party's People's Daily, said in an editorial that China would not only play in defense in a growing trade war.

Analysts Everbright Sun Hung Kai, said in a note Monday that China "would be very unlikely to travel to the United States in this context, both sides seeking to preserve their face and be perceived as being in a position of strength ".

The new tariffs, estimated at 10%, could cover a wide range of products, including Internet technology products and other electronic devices, printed circuit boards and consumer goods, including Chinese seafood products. , baby seats, according to a list of items announced in July.

Trump ordered the assistants to continue the new tariffs despite attempts by Treasury Secretary Steven Mnuchin to restart trade talks with China.

Fears of escalating trade war have resulted in a general decline in equities. A CSI300 sub-index that tracks the real estate sector is down 1.4%, industrial firms 1.2% and health care companies 2.4%.

The fall in real estate shares occurred despite data showing that house prices in August in China accelerated at the fastest pace in almost two years.

The small Shenzhen index finished down 1.5% on Monday and ChiNext's start-up board fell 1.2%.

The Chinese yuan has also been weakened by the prospect of a more intense trade war, although the central bank has set the mid-point of the daily trading range of the currency firmer than expected. The yuan traded at 6.8756 for a dollar before rebounding to 6.8699 for a dollar at 7:25 GMT.

In Hong Kong, the Hang Seng index tracking index sub-index fell 0.6%, while the information technology sector was 2.6% lower.

The People's Bank of China (PBOC) injected 265 billion yuan into the Chinese banking system through its medium-term loan facility, which surprised the market.

The "injection" sends the message that the PBOC remains proactive in maintaining stable money market rates, all the more so as the demand for cash is expected to increase over the next few weeks in a context of obligations. , long holidays and end of term ". (Report by Andrew Galbraith, edited by Richard Borsuk)

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