Shanghai Shares Close at Lowest Since 2016 as MSCI Debut Looms
- Benchmark gauge slides 2.5% amid trade tension, Italy woes
- Hang Seng China index falls 1.6% to lowest finish this year
How Morgan Stanley Is Preparing for China's MSCI Inclusion
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Mainland China shares slid to their lowest level since October 2016, just two days before joining MSCI Inc.’s global benchmarks, as trade tension with the U.S. flared again and turmoil in Italy weighed on markets worldwide.
The Shanghai Composite Index dropped 2.5 percent, the most in two months, taking its six-day drop to 5.4 percent. That’s the longest losing streak since 2013, leaving attempts at a rally earlier in May a distant memory. The Shenzhen Composite Index slid 2.8 percent, while Hong Kong markets also retreated, with the Hang Seng China Enterprises Index closing at its lowest level this year. A decline in the yuan after a record rally added to jitters.