Chinese stock markets are struggling amid uncertainties in trade negotiations between China and the US, negatively affecting investor sentiment.
Uncertainty in US Trade Negotiations
US President Donald Trump revealed on Thursday that trade talks with China are ongoing, but no specific progress has been disclosed. Furthermore, the Trump administration announced new fees on Chinese vessels, escalating geopolitical tensions.
Reaction of Chinese Stock Market
According to local reports, US measures are negatively impacting the growth outlook for China. On Friday, the Shanghai Composite Index fell by 0.1%, erasing a weekly gain of 1.2%. Most major companies in the country also reported stock price declines, with liquor maker Moutai decreasing by 0.3%.
Global Market Implications
The already shaky relations between the two countries are worsened by new requirements for Chinese ships to pay docking fees at US ports. This could result in reshaped trade alliances and market strategies globally. Dongxing Securities analyst Lin Yang stated, "Confrontation is still the main theme of the China-US trade war."
US-China trade disputes continue to exert pressure on stock markets, with little sign of improvement. Economic measures from both sides are expected to impact global economic dynamics.
