Shanghai Composite trades at the 2,800 handle for the first time since June 2016

After entering into a bear market yesterday, the rout continues. The index is now down 1.5% on the day, or more than 3% lower on the week and more than 10% lower for the month of June.

The Hang Seng index is also dragged along and is now down by 1.2% while the CSI 300 index has fallen by 2.5% now and is set to also enter a bear market when the closing bell rings.

Despite all the doom and gloom here, it doesn't seem to have spread over to developed markets just yet and so far global investors are taking all of this in good stride. And that is a bit of a puzzle if you ask me.

With the PBOC also continuously weakening the yuan - raising questions of devaluation - and a meltdown in Chinese equities and a potential for further pain down the road in light of slowing credit growth, surely the elephant in the room has to be addressed at some point.

Right now, the market continues to be shackled by the earlier mood this week on the trade rhetoric but I reckon it's about time it wakes up from that and looking around again. Because given what we've seen so far, it is suggestive that it won't be something that will go away any time soon.