China’s Apple iPhone ban hurts supplier stocks as CSI 300 Index suffers 1.4% weekly loss

Suppliers including Foxconn Industrial Internet and Luxshare Precision Industry slumped as the CSI 300 Index logged a weekly loss

Hong Kong cancelled Friday’s trading for stocks and derivatives after a black rainstorm warning

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An electronic board shows Shanghai and Shenzhen stock indexes, at the Lujiazui financial district in October 2022. Photo: Reuters

Published: 10:42am, 8 Sep 2023Updated: 3:57pm, 8 Sep 2023

China stocks slipped as local Apple suppliers tumbled following Beijing’s ban on iPhones among government staff. Trading in Hong Kong was cancelled after a black rainstorm warning.

The CSI 300 Index fell 0.5 per cent to 3,739.99 at the close of Friday trading, culminating in a 1.4 per cent loss for the week. The Shanghai Composite Index declined 0.2 per cent and Shenzhen Composite Index retreated 0.4 per cent.

Hong Kong halted the trading of stocks and derivatives after the Observatory issued the Black Rainstorm warning, marking the second time this month that inclement weather disrupted the city’s financial markets.

Apple’s supplier Foxconn Industrial Internet dropped 0.6 per cent to 19.08 yuan and Luxshare Precision Industry slid 2 per cent to 29.35 yuan after Chinese government agencies banned employees who focus on investment, trade and international affairs from using iPhones at work.

Battery producer Contemporary Amperex Technology retreated 1.6 per cent to 222.94 yuan, EV maker BYD dropped 1.8 per cent to 244.05 yuan and AI server maker Inspur Electronic slid 3.3 per cent to 35.17 yuan. Liquor distiller Kweichow Moutai weakened 1.1 per cent to 1,818.50 yuan while peer Wuliangye lost 1.3 per cent to 160.96 yuan.

The yuan is hovering near the lowest level since 2007. Photo: Shutterstock

Stocks slipped before a government report on inflation on Saturday. Prices probably increased in August after a decline in July, according to economist forecasts tracked by Bloomberg. But the readings are likely to remain weak amid the unwillingness of Chinese consumers to spend, said Tim Waterer, chief market analyst at KCM Trade.