Chinese Stocks Slump Over Additional Global Tariffs Threat; Mubang High-tech Drops 5%

Chinese shares dropped as sentiment soured over more international tariffs being imposed on Chinese goods, particularly steel and aluminum.

The Shanghai Composite Index slipped 0.4%, or 13.90 points, to close Thursday's session at 3,332.48. The Shenzhen Component Index fell 0.8%, or 82.26 points, to 10,626.62.

The Indian government is looking at imposing a temporary tax of between 15% and 25% on Chinese steel as soon as six months to protect India's steel industry, Reuters reported Wednesday.

Steel Minister H.D. Kumaraswamy said that cheap imports, including those from China, are a "serious challenge" to Indian manufacturers.

The news followed the White House's 25% tariffs on Chinese steel and aluminum products.

In corporate news, Jiangxi Mubang High-tech fell 5% after a court ordered the freezing of 1.1 million yuan worth of a subsidiary's bank account amid a sales contract dispute case.

Liaoning Chengda dropped nearly 5% as it faces changes in its controlling shareholder.

Moreover, China XD Electric closed over 4% lower after its unit, GE Smallworld (Singapore), said it will dispose up to 3% of its holdings in the electrical equipment manufacturer.

A unit of China XD Electric plans to trim its holdings in the company, according to a Shanghai Stock Exchange disclosure on Thursday.

GE Smallworld (Singapore) will dispose of up to 3% of its stake between March 6 and Jun 5.

GE Smallworld currently owns 12% or 615.1 million shares in the Chinese electrical equipment manufacturer, the disclosure said.

The company's shares dropped more than 4% in recent trade.

Liaoning Chengda's controlling shareholder will change amid the election of its board of directors, according to a Shanghai Stock Exchange filing on Thursday.

Shaoguan Gaoteng Enterprise Management will become the Chinese biotechnology company's controlling shareholder as it owns 15.3% of the company. Shaoguan Gaoteng will also elect a majority of directors as it takes controlling rights in the company.

Liaoning State-Owned Assets Management is currently the company's controlling shareholder and actual shareholder. None will take over as actual controller when the state-owned organization relinquishes its controlling stake in the company.

The company's shares slumped over 4% in recent trade.

A court ordered the freezing of the bank accounts of Guangxi Mubang High-tech New Energy, a unit of Jiangxi Mubang High-tech , which amounted to 1.1 million yuan, according to a Shanghai Stock Exchange filing on Thursday.

The order came as the Chinese photovoltaic equipment manufacturer faces a sales contract dispute case with Wuxi Jiangsong Technology, the filing said.

The company's shares dropped 4% in recent trade.

China XD Electric said its seven subsidiaries won bids totaling 1.71 billion yuan from China's State Grid.

These bids were for the provision of various products, including 1000-kilovolt transformers, converter transformers, DC through-wall bushings, combined electrical appliances, mutual inductors and lightning arresters, according to a Wednesday filing with the Shanghai bourse.

Shares of the electrical equipment manufacturer rose 1% in recent trade.