China Stocks Decline as New U.S. Tariffs Loom
China’s stock markets declined on Friday, with the Shanghai Composite falling 0.3% and the Shenzhen Component down 0.2% due to impending U.S. tariffs and economic uncertainty. Tariffs from President Trump heighten trade tensions, while skepticism surrounds China’s GDP growth target for 2025.
On Friday, the Shanghai Composite Index experienced a decline of 0.3%, falling below the 3,370 mark, while the Shenzhen Component decreased by 0.2% to settle at 10,645. This decline came as investors prepared for the implementation of new tariffs from the United States, which are scheduled to take effect next week.
President Donald Trump’s proposed automotive and reciprocal tariffs will add to the existing 20% tariffs imposed on Chinese products, thereby exacerbating trade tensions. Additionally, ongoing economic uncertainties in China, along with insufficient policy support, have contributed to negative investor sentiment.
Despite China’s recently announced 5% GDP growth target for 2025, market sentiment remains skeptical. The concern primarily stems from weak domestic demand coupled with increasing global risks, casting doubt on the feasibility of achieving this target.
Notably, several companies faced substantial losses on Friday, including DH Heavy, which declined by 7.9%, Ningxia Baofeng Energy at 6.5%, Naura Technology at 3.6%, Postal Savings Bank at 2.6%, and Hubei Yihua at 5.4%.
In summary, China’s stock market has shown a downward trend due to impending U.S. tariffs and persistent economic uncertainties. The skepticism regarding China’s GDP growth target reflects broader concerns related to domestic demand and global risks. The notable declines in several key companies underscore the market’s apprehensive atmosphere.
Original Source: www.tradingview.com
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