While global risk appetite returned yesterday on the heels of France’s presidential election, shares in China bucked the trend, dropping the most in three months. The Shanghai Composite Index has lost almost 5 percent since its mid-April peak, worse than all other national benchmarks in the world. The slump in Chinese stocks is deepening as authorities seek to reduce economic leverage and regulators intensify supervision on the country’s financial sector. While the selloff has been relatively contained, with European politics taking center stage instead, investors may be forced to take note if the losses continue, as predicted by analysts. “We shouldn’t forget what happened two years ago,” said Mark Tinker, head of Axa Framlington Asia in Hong Kong, referring to 2015’s dramatic collapse in Shanghai share prices. “The hope is that this is all just a preemptive strike from the Chinese government to make sure markets don’t squeeze up too much. The risk of contagion is low as long as people don’t start confusing the stock market with the economy.”
Israel-China construction deal reportedly bans settlements
Israel and China have signed a deal to bring Chinese construction workers to Israel, but the workers will reportedly be barred from building in West Bank settlements at China’s insistence. Foreign Ministry spokesman Emmanuel Nahshon said the deal ensures they will work in areas “agreed upon by both sides that take into consideration their safety and well-being.” He would not elaborate but Israeli media reported this as meaning the workers will not be working in territory Israel captured in 1967 that the Palestinians claim for a future state. The international community mostly views Israeli settlements there as illegal and an obstacle to reaching a two-state solution to the conflict.Israel says settlements along with other core issues like security should be resolved in peace talks.
Nicaragua once again blocks canal protest against Chinese company
The Nicaraguan government has once again blocked a planned protest by opponents of a Chinese company’s project to build an interoceanic canal across Nicaragua. The country’s National Police force said in a statement over the weekend that the protesters were disturbing the peace. A lawyer for the farm groups organizing the weekend protest in the central town of Juigalpa said at least one person was wounded. Monica Lopez Baltodano said about a dozen organizers had been detained by police. Sceptics have doubted whether the canal concession, granted in 2014 to a Chinese company, will ever be built. It has barely broken ground. Critics say the canal project threatens to displace rural communities and damage the environment. About 7,000 families living along the route face displacement.
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