China's main equity index poised to enter technical correction

According to Bloomberg, China's main stock index, the CSI 300, has declined more than 10% from its February peak and looks set to enter a technical correction, with investors worried about rising bond yields and tightening liquidity. 

On Tuesday, China's top banking regulator called for a need to reduce leverage amid the rising risk of asset bubbles across the globe and in the property sector at home. 

Markets are now looking for fresh cues from the National People's Congress (NPC), which began today. The NPC announced the 2021 growth target of 6%, disappointing projections of higher growth.