HONG KONG: There was no rush to buy the dip in Chinese stocks after their biggest rout in more than three years.
The Shanghai Composite Index dropped 0.5% as of 1:21 pm local time after losing 5.6% Monday. The declines, which wiped out US$487bil from the value of Chinese shares, followed two tweets from US President Donald Trump threatening to raise tariffs on Chinese goods this week over the pace of trade talks. His top trade negotiator late Monday confirmed the plans. The offshore yuan briefly extended losses after China’s state-run Global Times newspaper said the country is ready for temporary breakdown in trade talks.