China stocks hit four-year low

Bloomberg

China’s benchmark equity gauge fell to its lowest close since 2014, before the market’s boom and subsequent bust, while Hong Kong stocks also declined as the US trade dispute and a severe typhoon hurt sentiment.
The Shanghai Composite Index fell 1.1 percent to 2,651.79 points, passing its 2016 post-crash low of 2,655.66. The gauge is one of the worst performing in the world this year, down around 25 percent from a January high, dogged by concern about China’s economy and the trade war, among other factors. Hong Kong, which hasn’t fared much better, was dealt an extra blow by Typhoon Mangkhut over the weekend, which forced Macau casinos to close and cancelled hundreds of flights. The Hang Seng Index lost 1.3 percent.
Donald Trump is still planning to impose tariffs on $200 billion of Chinese goods, according to people familiar with the matter, and CNBC says an announcement could come as soon as today. The news, along with a Wall Street Journal report that China may decline to take part in negotiations, appeared to dent hopes of renewed talks that briefly lifted stocks at the end of last week.
“The market seems a bit concerned about Beijing dropping out of trade negotiations and there’s some profit taking pressure following the gains late last week,” said Daniel So, a Hong Kong-based strategist with CMB International Securities Ltd. “Investors will likely stay cautious due to uncertainties ahead of the mid-term election in the US.”
Typhoon Mangkhut forced the suspension of Macau casino operations over the weekend, prompting analysts to slash their September revenue growth forecasts. A Bloomberg gauge of casino operators slid 2.1 percent in the morning before recovering to rise 0.7 percent at the close. JPMorgan Chase & Co. analyst DS Kim wrote that casino stocks are approaching levels that offer good value.