Chinese stocks are currently on track for their worst monthly performance in a decade. This downturn is partly attributed to the red-hot emerging market trade being negatively affected by a global bond sell-off.
In related news, chip stocks have experienced a tumble, further contributing to the negative sentiment in the market. Despite a global competitiveness drive, the Hong Kong stock exchange, where many Chinese companies list, is becoming increasingly dominated by Chinese firms.
Investors are also reportedly pulling out of suppliers to the artificial intelligence boom, often referred to as 'picks and shovels' suppliers. These combined factors are creating a challenging environment for Chinese equities.
