China Stocks Hover on Brink of Bear Market as Grim Mood Persists
https://www.bloomberg.com/news/articles/2018-06-22/china-stocks-poised-for-bear-market-on-trade-and-growth-jitters
Chinese stocks ended higher Friday but remained on the edge of a bear market, as investors weighed concerns over a possible trade war with the U.S. against a domestic regulatory order aimed at preventing a downward spiral of selling.
The Shanghai Composite Index closed up 0.5 percent, after swinging between gains and losses throughout the day. Its weekly decline was trimmed to 4.4 percent, still the worst showing since early February. The measure has tumbled nearly 19 percent from its January high, approaching the 20 percent threshold for a bear market. Adding support on Friday were reports that brokers must seek government approval before liquidating shares pledged as collateral for loans.
The news that brokers were ordered not to liquidate pledged shares after prices fell to key levels soothed short-term sentiment, said Dai Ming, Shanghai-based fund manager with Hengsheng Asset Management. Upside may be limited as China-U.S. trade issues and risks linked to share pledges remain an overhang in the medium to long-term.
Chinese stocks ended higher Friday but remained on the edge of a bear market, as investors weighed concerns over a possible trade war with the U.S. against a domestic regulatory order aimed at preventing a downward spiral of selling.
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