Chinese stocks closed at the lowest level since October 2016, and this is just two days before inclusion into MSCI global index, Bloomberg reports.

Index Shanghai Composite went down by 2,5% on Wednesday. This is the biggest drop in two months and the longest period of losses since 2013. Index lost 5,4% over six days and erased gains it got in the beginning of a month. Market in Hong Kong also dropped with Hang Seng Index showing the lowest closing level this year. Yuan decline made the situation worse. Index Shenzhen Composite lost 2,8%.

Chinese stocks experience volatile year in 2018 due to tense relations with the US. On Tuesday President Trump informed that he will apply tariffs to Chinese import valued at $50 billion and restrict investments into sensitive technology.

List of tariffs will be ready by June 15, just three days after meeting with the leader of North Korea. It this meeting does not give good results, then tariffs will become a reality, experts think. This perspective looks now too real and worries the market.

MSCI will include more than 200 Chinese companies into its index on June 1. Their weight will be small compared to the market size but it is just the first step in opening Chinese capital markets that will stimulate new inflows. This is why today’s selloff of stocks might represent a good buying opportunity since trade issues will be solved in a near term, experts suggest.