The Mainland China equity market extended losses on Tuesday, 04 June 2019, as risk sentiments hurt after China and the United States feuded in a war of words over trade and technology transfer. Around late afternoon, the benchmark Shanghai Composite Index declined 1.2%, or 34.39 points, to 2,855.89. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was down 1.8%, or 27.44 points, to 1,488.44. The blue-chip CSI300 index fell 1.16%, or 42.24 points, to 3,589.77.

Investors remained risk-averse amid concerns heightened international trade frictions could derail the global economy, due to U.S. President Donald Trump's tariff threat on all imports from Mexico on last Thursday and China's imposition of retaliatory tariffs on U.S. goods Saturday.

U.S. President Donald Trump, on a state visit to the UK, is expected to warn his hosts on Tuesday that security cooperation with Washington could be hurt if London allows China's Huawei a role in building parts of the 5G network, the next generation of cellular technology.

On Monday, the U.S. Trade Representative's office accused China of pursuing a blame game in recent public statements and a weekend white paper that misrepresented the trade negotiations between the world's two largest economies.

Trump and Chinese President Xi Jinping are due to meet at the G20 meeting in Japan in late-June. The pair are expected to hammer out an agreement to end or de-escalate trade tensions.

CURRENCY NEWS: China yuan edged lower against greenback on Tuesday, despite firm mid-point fixing by central bank. Prior to Tuesday's open, the PBOC set the midpoint rate at 6.8822 per dollar, firmer than the previous fix of 6.8896. Spot yuan was changing hands at 6.9079 at afternoon trade, 49 bps weaker than the previous late session close and 0.37 percent softer than the midpoint.