Both the CSI 300 and Shanghai Composite indexes closed down 1.3% today making it the back-to-back weekly losses for China's major indexes. Today's drop wipes out the gains from earlier in the week and pours cold water on any hopes of getting back into the mood to start the new year:
CSI 300 index chart daily
The bounce earlier in the week came after a test of the 100-day moving average (red line). But with today's downturn, we're seeing sellers pull out their key technical level. And that could indicate more risk for Chinese shares going into next week.
That's especially with a weaker yuan also in play, making it less attractive to grab Chinese assets. Not a good start to the year to say the least.
