Pursuits
China’s Stocks, Bonds, Yuan Slump in Unison on Liquidity Concern
- Shanghai Composite Index retreats most in six months
- One-year sovereign debt yield increases 15 basis points
Magnus: It's Not Obvious What Trump Wants on China
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Unease is once again permeating China’s financial markets.
The Shanghai Composite Index sank 2.5 percent at the close, the yuan fell toward an eight-year low, while government bonds tumbled, with the one-year sovereign yield rising 15 basis points. Analysts had a long list of reasons for the synchronized selloff, from President-elect Donald Trump’s questioning of the decades-old One China policy, to a regulatory crackdown to insurers’ stock investments, higher money market rates and concern that property prices are poised to fall.