China Investors Brace for 'Ugly' Monday on US Tariff Retaliation
Source: Bloomberg
(Bloomberg) -- China investors are bracing for a grim Monday as the nation’s markets return from an extended weekend and factor in its retaliation to US tariffs.
A gauge of Chinese stocks listed in the US plunged 8.9% on Friday, the most since October 2022, amid global market turmoil after Beijing announced 34% tariffs on all imports from the US. That came during a holiday for Chinese and Hong Kong equities, which will restart trading on Monday.
A fall of similar magnitude in the local shares could put multiple Chinese equity gauges — such as this year’s top major global performer, the Hang Seng China Enterprises Index — into a technical correction, and in some cases close to a bear market. That would end a nascent recovery in the country’s assets, unless mainland-based investors and bargain hunters step in to cap the slide.
The quick retaliation by China, following US President Donald Trump unleashing the steepest increase in tariffs in a century last week, has raised the odds of a global recession. The heavy selloff in US-listed Chinese stocks also reflected fears of further tit-for-tat responses between the world’s top two economies.
Read more: https://finance.yahoo.com/news/china-investors-brace-ugly-monday-100902016.html
Anyone that is going to buy buy buy in this chaotic mess is
, plain
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