Chinese stocks were spared the worst in a selloff that’s sent emerging market assets tumbling across the world.
While the Shanghai Composite Index fell 0.3% 2018-08-13 (Monday), it clawed back losses of as much as 1.9% as investors bought tech in afternoon trading. The yuan slid 0.5% to 6.8763 per dollar after China’s central bank weakened its daily fixing to the lowest level since May 2017. Hong Kong’s Hang Seng Index lost 1.5%.
Foreign investors have been snapping up yuan-denominated shares despite the losses and volatility in mainland markets. MSCI Inc. will announce details on the second step of A-share inclusion before Tuesday’s market open, with all changes effective Sept. 3. Onshore shares’ inclusion factor will double to 5%.
Bloomberg, 2018-08-13, “Even as Yuan Slides, China Stocks Resist Emerging Market Selloff”