SSE Composite Index fell
The SSE (Shanghai Stock Exchange) Composite Index fell from April 27 to May 4, 2016, and ended at 2,991.3 on May 4, 2016. This came after China’s manufacturing PMI (Purchasing Managers’ Index) fell in April, raising fresh concerns about China’s economic outlook.
The SSE Composite Index fell after news broke that Donald Trump was the Republican Party’s presumptive presidential nominee. Trump’s policies could affect US-China trade relations. Recently, Trump proposed that the tariffs on imported Chinese goods be increased up to 45%. He further stated that China has waged “economic war” against the United States by taking American jobs.
Returns of China-focused funds
From April 27 to May 4, the iShares MSCI China (MCHI) lost the most among China-focused funds, falling 5.8%.
The Deutsche X-trackers Harvest CSI 300 China – Class A (ASHR) fell 0.4% for the same period.
American depositary receipts (or ADRs) of Chinese companies such as Baidu (BIDU), JD.com (JD), and Alibaba Group Holding (BABA), in which the above funds are invested, fell 5.5%, 4.4%, and 2.4%, respectively. NetEase (NTES) rose 4.8% from April 27 to May 4, 2016.
In the next article, we’ll look at China’s official manufacturing PMI.