Chinese Stocks Enter Bear Market as Geopolitical Risks Mount

  • MSCI China gauge extends drop from Oct. 7 high to 20%
  • Investors are bracing for worsening of geopolitical tensions
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Chinese shares fell for a fifth straight day, pushing a closely watched benchmark into a bear market, as geopolitical tensions simmer ahead of Donald Trump’s inauguration.

The MSCI China Index dropped 1.5% on Friday, taking its decline from an Oct. 7 close to 20%. The CSI 300 Index of onshore Chinese shares was down 1.3% and has lost more than 5% in the new year.