China’s two main stock indices have entered bear markets following a week of tough trading amid tariff threats from the US and a more cautious economic outlook from officials.
The Shanghai Composite closed at 2844.51 on Tuesday, reports the Wall Street Journal, down 20.1% from the two-year high seen in January. Bear markets are usually defined as a drop of 20% from a recent high.
Chinese state-owned commodities industries have a high weighting on the Shanghai Composite, which have taken a hit since the White House made steel and aluminium a central target for tariffs.
The Shenzhen stock market index has been in a bear market for several months. Several major tech companies, including ZTE Corp., are listed on the exchange, and have been consistently dented by US trade uncertainty.