A poor finish to the week for Chinese language shares

Each the CSI 300 and Shanghai Composite indices closed down by 1.three% right this moment and that makes it back-to-back weekly losses for main indices in China. The drop right this moment erases the features from earlier within the week and pours chilly water on any hopes of a restoration in sentiment to start out the brand new yr:

The bounce earlier this week got here after a take a look at of the 100-day transferring common (purple line). However with the drop right this moment, we’re seeing sellers take out the important thing technical degree. And that might spell out extra hazard for Chinese language equities going into subsequent week.

That particularly with a weaker yuan additionally in play, making it much less attractive to maintain a maintain of Chinese language belongings. Not begin to the yr to say the least.

This text was written by Justin Low at www.ubaidahsan.com.



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