Chinese stocks fall and the returns of bonds approach a historic bottom

Chinese stocks have collapsed and the returns of the mortgage have retreated to their lowest levels, with investors ready for the effects of a commercial dispute increasing between the two largest economies in the world. The most important indication of the Chinese shares listed in Hong Kong fell by more than 9%to become a correction path, while the CSI 300 (CSI 300) in the local market fell by 5%. The return on Chinese government bonds also dropped by 10 basis points by 10 basis points at the beginning of the trading and the lowest recorded level. This heavy sale has increased the intensity of the declines that hit world markets since US President Donald Trump announced comprehensive customs duties last week, and the follow -up of a retaliation of Beijing. This escalation forced investors to confront the fact that the trade conflict that has long been afraid of the outbreak of China and the United States has entered a new phase. “Neither the United States nor China shows any retreat in imposing new customs duties, and in this growing context it is not surprising that we see to avoid risky assets,” says Tim Water, Chief Market Analyst at KCM Trade. The external yuan fell 0.3% against the dollar. Beijing’s response has surprised investors and markets to interact the extensive sale in Chinese shares, with investors having the first opportunity to accommodate Beijing’s response to the US fees, announced during the market holidays on Friday. Chinese officials imposed similar fees in response to those imposed by Washington. This quick response was a surprise to some investors, and raised the fear that the United States could increase the fees imposed on China, which could lead to a series of mutual retaliation, in a scenario that threatens a possible disaster for the world economy. “What happens is to push us more in the direction of a commercial war,” wrote Cen Oliver, the chief economist of the office company, in a note on Saturday. This sale in Chinese shares increased the pressure on an upset increase in the first quarter of the year, which was optimistic about the country’s progress in the field of artificial intelligence, and bet that external pressure would promote policy makers to promote economic support. The MSCI China increased by 13% from the beginning of the year to Friday, compared to a decrease of about 14% in the S&P500. Goldman reduces his expectations and emphasizes the risks in a report released on Sunday. The Goldman Sachs group reduced its forecast for Chinese stock indicators over a 12 -month period. The price target of the MSCI China index was reduced to 81 points instead of 85 points, while the expectations of the CSI 300 (CSI 300 “index (CSI 300) were reduced to 4,500 points instead of 4.700 points, according to analysts, including Koner Lao. White House.