China Stocks Set to Snap Five-Month Bull Run as Caution Returns

Chinese shares are on course for their first monthly loss since April, as an earlier liquidity-driven rally gives way to concerns about lingering US-China tensions and a struggling economy.

The MSCI China Index has fallen 2.5% in October, snapping a five-month winning streak. That lags well behind the MSCI Asia Pacific Index’s 4.2% gain.

The renewed weakness in Chinese shares is a sign that caution over longer-term frictionsbetween Beijing and Washington has overtaken initial optimism about an extended trade truce. It also reflects broader disappointment with a lack of potent policy support from a recent meeting of ...