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China’s financial market slump highlights sensitivity to Trump’s trade threats — in one chart

Sunny Oh
China’s financial market slump highlights sensitivity to Trump’s trade threats — in one chart

Chinese financial markets suffered heavy losses on Monday after Trump’s most recent threat to ramp up tariffs upended investors’ perception that a trade deal would arrive soon. The slump in Chinese equities was particularly brutal as domestic stock-market benchmarks saw their worst daily performance since Feb. 2016, when fears about a sharp slowdown in an increasingly debt-laden economy resulted in sharp stock-market losses. Analysts said if the U.S. President’s threat turns out to be more than a negotiating ploy, a key foundation of China’s stock-market run-up this year could collapse, sending equity markets lower.