Losses in Chinese assets are mounting again as Beijing’s modest stimulus disheartens investors.
The Hang Seng China Enterprises Index of Hong Kong-listed Chinese companies slumped more than 6% last week to cap its steepest drop since March. The CSI 300 Index of mainland shares fell 2.5% through Wednesday before markets closed for holidays. The yuan also tumbled to the weakest since November, with analysts bracing for more declines.
There’s little reason for mainland traders to be optimistic when markets reopen on Monday. China’s travel spending during the dragon-boat festival holiday fell short of pre-COVID levels, underscoring the slowdown in consumption. Preliminary estimates from the Passenger Car Association showed over the weekend that passenger vehicle sales for June are expected to drop 5.9% year-on-year.