The CSI 300 Index sold off again as the US-China trade war is to get much worse. The index is trading right at the huge 3200 level. A break below it and things can get fluid.

The negative trend since January highs is intact, and despite the index relatively oversold, a possible break below the support could trigger new losses for the index. We are trading at levels not seen since 2016. Next huge level on the big picture chart is at 3000.

The ratio of the CSI 300 versus the SPX is at levels not seen since 2014. This gap has just been widening over past months and note it just made a new relative low.

The offshore yuan has actually been rather boring over past weeks. The tight range is holding for now, but don’t remove it from the radar yet.

Despite the Chinese markets being a real dog, there is one aspect that is actually less crazy than during the prior boom/bust move, margin trading (white).

At least the officially reported margin trading figures (shadow banking we can’t really know too much about) are more normal than during the 2015 exuberance.

Image of margin trading and the CSI 300 (orange).

Source: charts by Bloomberg