Chinese stocks turn their direction from a sharp drop to sudden profits
Chinese stocks turned their direction from sharp drop to sudden profits, after US President Donald Trump ascended commercial confrontation by imposing standard definitions on imports from China. The ‘Hang Singh Sing for Chinese Companies’ fell by 4.4% during the morning trading before eradicating its losses and closing a slight increase. The Chinese Chinese “CII 300” index also fell 1.7% before the apostasy got to the top. The definition train is launched and the stock exchange interacts. Intensive sales came before the start of the 104% customs duties imposed by the United States on China, which came into effect in the afternoon on Wednesday. But when the threat actually changed, investors returned to the market. “Perhaps this is due to the market expectation that China and the United States will eventually return to the negotiating table over commercial conflicts,” said Jason Chan, investment strategy at East Asian bank, citing Beijing’s efforts to support markets, including the government of government funds to buy shares and get the hope of expected financial incentives. China and Tremb .. Shield and Revenge Despite the current recovery, the chaos of the market may not end soon, especially in light of the lack of an immediate response from Beijing to the last round of definitions, which is a deviation from the rapid response pattern China previously adopted. However, Beijing had previously promised “battles to the end” and described the American escalation as “an error based on another error”. Investors are currently preparing for a long time of mutual retaliation. “The serious turmoil has not ended yet, and investors need to prepare for more fluctuations today,” said Kyle Roda, chief analyst on the “Capital.com” website, and notes that the 104% tariff “is enormous, and if a reaction from the Chinese government comes, things can make things significantly. The victims of the trade war were the shares of Chinese businesses related to the most relevant US supply chains during the morning wave, as the shares of “Shenzhou International”, which earned 26% of its revenue from Nike, reached a rate of 7.4%. The shares of “Goretek” and “Aac Technologies”, “Aarst”, also dropped by Archetek, by more than 8% before the losses decreased. The pharmaceutical sector has also been subjected to strong pressure, after Trump announced that it plans to impose a ‘big customs tariff’ on the sector soon. The share of “Beigen” fell 12.7%and lost about a quarter of its market value this week. The trade war is a test for China’s ability to support the stock market in times of crisis. While Trump has greatly ignored the impact of procedures in the markets, Beijing has made use of all available ways, including reducing its grip on the currency, providing loans to government funds, relieving investment rules for insurance rules and the use of state funds to buy shares and indirect indicators. Beijing between optimism and motivation was witness to the indicators associated with the so -called ‘national team’ record flow of 87 billion yuan (about $ 11.9 billion) Tuesday, on the second day a new record is recorded, indicating intense intervention by government funds to support the market. The Chinese government media has adopted an optimistic tone as the ‘China Sequiitez Journal’ indicated that the authorities have developed a more effective approach to markets stability, and still have a large margin to increase investor confidence. As for the “Shanghai Sikiuriz News” newspaper, it talked about a new stage in building the mechanism to stabilize the Chinese financial market. But the vote of investors did not fully describe. According to local reports, China’s brokerage firms have sharpened their censorship on stock shares using loans, pending the risks of acute market fluctuations. While foreign investors have launched a wide financial stimulus package to compensate the effects of customs tariffs. “With Trump taking a more striking position against China, markets are prepared for more pressure, and morale versus Chinese equities are still fragile”, emphasizing that “a lot depends on China’s reaction, the strong escalation of the Chinese authorities can increase the decline of investor confidence, which does not accompany it with a major local stimulus, but not the political promise. to compensate for any negative external shocks. “Bloomberg reported that Beijing is considering providing financial incentives early to alleviate the impact of definitions. Global stocks have fallen strongly following Trump’s fees, as the” S&B 500 “index has dropped by more than 15% since the beginning of the year. Fees revenue on the US Treasury will earn and protect important industries. In the foreign exchange market, the Chinese external Yuan scored its worst level on Tuesday, with the Chinese central bank allowing the decline, exceeding the 7.20 yuan per dollar level, which is considered by many traders as an “informal sensitive level of currency”. The central bank continued on Wednesday to weaken the reference price for the yuan. Chinese stock bounces, challenging Trump’s Trump fees, which imposes a 104% rate on Chinese imports. China’s indicators have turned out of sudden profits. Investors expect a possible return to commercial negotiations. Beijing supports the market through major government funds. Markets await China’s response amid increasing problems.