Chinese equities are being beaten down heavily as they return from their break
A week-long break hasn't done mainland Chinese stocks any good with the Shanghai Composite down 2.8% on the day while the CSI 300 index is down 3.5% currently. After the torrid week suffered by the Hang Seng as a result of ongoing trade tensions between US and China as well as rising Treasury yields, this shouldn't come at much surprise.
The bad news for Chinese investors is that this comes despite the PBOC deciding to add more stimulus to markets by cutting the RRR once again over the weekend. It certainly doesn't look like the PBOC's actions have done much to cushion the blow as we begin the new week.
However, the good news is that technically price is holding above the underside of the broken trendline which gave way over two weeks ago here. If price doesn't fall below that, then at least buyers can still argue for a more upbeat outlook for Chinese stocks as we look to close out the year.
