Thursday brought little in the way of relief for those concerned that the threat of a trade war between the U.S. and China risks triggering a repeat of what happened to Chinese equities in the summer of 2015.
The Shanghai Composite, already mired in a bear market, fell another 0.9% on Thursday, its third loss in four sessions this week. The gauge has only risen five times in the past twenty trading days:
For its part, the ChiNext underperformed, falling more than 2%. It’s still stuck near its lowest levels since early 2015 and frankly, just looks hapless as hell.
“How global equities finish the week will depend much more on how China markets trade Thursday [than the actual imposition of the tariffs],” Bloomberg’s Mark Cudmore wrote overnight, adding that mainland shares are “the epicenter of stress.”
Indeed. And while it remains to be seen if other markets (notably U.S. equities) can look through China’s malaise, this is a really tenuous situation:
