Main stock of Hong Kong suffered its biggest drop since 1997 on Monday (7), after the China Revouted the tariffs of the USA with its own rates, deepening the turbulence of the market amid fears of a Commercial War Warmer, while the Beijing Sovereign Fund intervened to stabilize local actions.
The index Hang Sengfrom Hong Kong, fell 13.22%, the largest daily drop since 1997, with the actions From technology, solar energy, online banks, banks and retailers, as investors have sold any assets linked to global growth and trade.
The CSI300 index closed down 7.05%, as Central Huijin, or the so -called “national team” of state -backed investors, said it increased participation in Chinese stocks to defend market stability.
China, which is now facing US fees of more than 50%, responded the same way on Friday, applying extra rates on US imports.
The intensification of the dispute between the world’s two largest economies threatens to shake commercial flows and, in addition to affecting Chinese profits, is also expected to make a slowdown in global demand at a time of faltering growth in China.
“I think the impact of this shock will be quite significant,” UBS chief economist told China, Tao Wang, on a call with investors on Monday. “To begin with, it was a challenge to reach government growth. And now it’s even more challenging.”
Trading volumes were heavy, especially since Chinese markets were closed on Friday, when sales were more intense in the US and other financial centers.
The Hang Seng Tech index plummeted 17%, marking its worst performance in a single day since the beginning of the records. The index fell 27% in a month and is close to where the year started.
In the absence of any indication of retreat from the White House, the focus of investors will be in Beijing, which may have measures to support Chinese exporters and strengthen the home economy.
