Chinese equities are at session lows for the day
The Shanghai Composite is down 0.8% while the CSI 300 index is down 0.7% as traders/investors return from their lunch break. A Reuters poll earlier in the day hinted at slowing factory activity in August and that is reinvigorating the trade rhetoric between US and China. That in turn is weighing on Chinese equities at the moment.
As US equities continue to post record highs, Chinese equities are unable to build up any momentum still:
The Shanghai Composite was almost up by 2% this week but is now just 0.6% higher with one more trading session to go.
A-shares in China are set to be included in the MSCI emerging market index starting next week, a move that should help to boost Chinese stocks by quite a bit. If that can't provide any additional relief, then the pain is set to continue as long as the trade rhetoric between US and China remains.
