Chinese yuan and stock markets fall as Trump's presidency approaches.
Chinese yuan and stock markets fall due to threat of trade war
The Chinese yuan and stocks in China's stock markets fell after US President Donald Trump's statements about the possible escalation of the trade war with China. This led to increased tensions in trade and technology issues. The Chinese "blue-chip" index CSI 300 decreased by 0.5%, while Hong Kong's Hang Seng index fell by 2.3%. According to reports, the Hang Seng China Enterprises index declined by 2.6%. Shares of Chinese tech companies JD.com and Alibaba also fell by 4%.
The US presidential election has a significant impact on China's economy and capital markets. Trump promised voters to impose tariffs on Chinese goods at 60% or more to support American manufacturing. This leads foreign investors to abandon investments in assets related to China.
However, the Chinese stock market has gone through a period of recovery. Since September 23, the CSI 300 index has risen by more than 20% due to the large-scale measures taken by China to lower rates and stimulate the economy.
Currently, it is expected that the US presidential election will play an important role in the further development of the Chinese market.
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