(Bloomberg) — A gauge of Shanghai-listed stocks is poised to close below a key psychological level as concerns over China’s economic recovery and geopolitical tensions continue to weigh on sentiment.
The Shanghai Stock Exchange Composite Index dropped as much as 0.5%, falling below the 3,000 points level for the first time since late March on a closing basis. Kweichow Moutai Co. and Shanxi Xinghuacun Fen Wine Factory Co. were among the biggest drags on the gauge.
The Shanghai gauge has fallen more than 5% since a peak in May as a rally in Chinese equities stalled amid Beijing’s reluctance to step up stimulus efforts. Asia’s largest economy faces increasing growth pressures at home, while major trading partners are imposing tariffs and restrictions on a slew of key Chinese exports.
The index dropping below 3,000 points “indicates that the overly stringent policies introduced by the new China Securities Regulatory Commission…
