The Shanghai composite is tracking for its worst year in seven after falling 8 percent in June amid escalating trade tensions and China’s efforts to reduce reliance on high debt levels.
U. S. stock investors aren’t the only ones suffering from anxiety over the Trump administration’s trade policies.
China’s Shanghai composite is tracking for its worst year in seven after falling 8 percent in June, amid escalating trade tensions and Beijing’s efforts to reduce reliance on high debt levels. A relentless six-week selling streak has sent the mainland’s benchmark stock index down 13.9 percent so far this year, to its lowest since 2016 and into a bear market — a more than 20 percent retracement from a recent high.
Escalation in trade tensions with the U. S. spurred the latest sell-off, analysts said. But they also point to the overarching trend of Beijing’s efforts to deleverage while maintaining economic growth. Neither of those factors are necessarily supportive for the local stock market in the near term.
“The sell-off was and is an impact of regulatory tightening,” said Lauren Gloudeman, a research analyst with Rhodium Group’s China markets research team.
