Recovery followed by a fall
After recovering spectacularly by over 3% on May 10, the Shanghai Composite Index fell again today—its third loss in the last five trading days. The uncertainty over the trade deal has led to dark clouds over global markets—especially Asian markets.
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The index lost 1.21% on May 13 to end the day at 2,903.71. Although the index rose on May 10 mainly on the back of expectations of constructive trade talks, the day ended without any deal. With the scheduled talks over, we’ll have to wait for both sides to meet in Beijing to continue the negotiation process. President Donald Trump and Chinese leader Xi Jinping are expected to meet during the G20 summit in Japan in June.
The Hong Kong market was closed on May 13 on account of Buddha’s birthday.
The iShares MSCI China ETF (MCHI) gained 0.65% on May 10 compared to the gain of more than 3% in the Shanghai Composite Index. The S&P 500 was up marginally on the same day. No premarket trading was reported for the ETF.
The more diversified Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) outperform the MCHI but underperform the Shanghai Composite on May 10, clocking a 2.23% gain. The ETF was trading 2.55% down in premarket trading today at 4:14 AM EDT. The iShares China Large-Cap ETF (FXI) continued to follow MCHI’s path to end the day with a 65-basis-point gain.