August 31, 2018 / 7:37 AM / 23 days ago

China stocks end lower on renewed trade war fears

SHANGHAI, Aug 31 (Reuters) - China stocks ended lower on Friday on renewed trade war fears and despite fresh foreign money inflows ahead of the second leg of China’s MSCI inclusion on Monday.

At the end of a volatile trading session, the CSI300 index fell 0.5 percent to 3,334.50 points, while the Shanghai Composite Index dropped 0.5 percent to 2,725.25 points.

There was a sudden flow of money into Chinese stocks from Hong Kong via the Stock Connect scheme during the final three minutes of trading.

Analysts said they expected overseas passive funds to rebalance their portfolios ahead of the second tranche of MSCI inclusion on Monday to avoid tracking errors.

Market sentiment was subdued after a report that U.S. President Donald Trump is prepared to ramp up a trade war with China and is ready to impose tariffs on $200 billion more in Chinese imports after a period of public comment on the plan ends next week.

Risk appetite was also soured by the Chinese government’s proposal for tougher measures against online gaming, which hit listed game operators. Shares in YOUZU Interactive, Ourpalm and Tangel Publishing tumbled. (Reporting by Shanghai Newsroom Editing by Darren Schuettler)

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