Chinese Indexes Ended Six-Day Winning Streak Today

Trump-Xi meeting

Today, Reuters reported that a senior official in the US government sees the Trump-Xi meeting scheduled in Osaka this weekend as just a way for Trump to see Beijing’s position. He added that President Trump is comfortable no matter what the position is. The meeting is likely to happen on Saturday, the second day of the summit. Huawei is expected to be a key topic at the meeting, as Trump has waged war on the Chinese tech giant. Apart from Xi Jinping, Trump is expected to meet seven other world leaders during a one-on-one meeting.

Chinese indexes

The six-day winning streak of the benchmark Shanghai Composite Index was broken today as the index fell 0.87% to close at 2,982.07. This was the longest winning streak in over a year for the index, which has gained 19.6% so far in 2019. The index fell sharply in the first half but partially recovered in the post-lunch session. The blue-chip CSI 300 followed a similar trajectory to end 1.04% lower. The tech-heavy Shenzhen Component lost 1.02% today.

On Monday, major China-focused indexes remained steady. However, the iShares China Large-cap ETF (FXI) was trading 1.08% lower in pre-market trading at 5:03 AM EST.

The ADRs of Baidu (BIDU) were trading 0.6% lower in pre-market trading at 4:00 AM EST. Baidu is a Chinese Internet company that features among the constituents of the KraneShares CSI China Internet ETF (KWEB). Alibaba (BABA) was trading 0.8% lower in pre-market trading at 5:38 AM today. Alibaba is also a part of the KraneShares CSI China Internet ETF.