A key China equities index closed at a fresh one-year low on Thursday and the renminbi weakened further after a turnround on Chinese investment restrictions by Donald Trump failed to alleviate deeper fears over Sino-US trade tensions and China’s economy.
The CSI 300 index, composed of major companies listed in Shanghai and Shenzhen, dropped 1.1 per cent to its worst close since May 2017. In a choppy trading day the index initially slumped as much as 1.1 per cent before edging higher to stand up 0.3 per cent by midday and then sinking again in the final session.
The moves came after Mr Trump dropped plans to impose new restrictions on Chinese investment in the US on Wednesday, bowing to pro-business advisers who warned it would damage the economy by chasing away foreign businesses.