Chinese stocks approached bear market territory in the wake of President Donald Trump’s latest tariff announcement, reported Bloomberg, with over one in four companies on China’s equities benchmark hitting the 10% daily circuit-breaker.
The Shanghai Composite Index even fell below 3,000 during the day’s trading, a figure not seen since the stock market crashes of three years ago that saw the daily loss limits first introduced. The index is now trading at less than 11 times projected earnings, the cheapest since the beginning of 2015.
US stocks also dropped yesterday on the trade news. The Dow Jones Industrial Average fell 1.2% while the largest Chinese stock tracker fund sank 2.8% for the day.