FX.co ★ China Stocks Fall Ahead of Fresh Trump Tariffs

The Shanghai Composite Index dropped 1.9%, falling below the 3,100 mark, while the Shenzhen Component decreased by 0.9% to settle at 9,340 on Wednesday. This decline reversed gains seen in the previous session, following news that U.S. President Donald Trump plans to enforce substantial tariffs of 104% on Chinese imports, intensifying trade tensions between the two nations. In response, Beijing has promised to "fight to the end" and has committed to intensifying its countermeasures against U.S. exports. Meanwhile, White House Press Secretary Karoline Leavitt confirmed Trump’s firm stance on the tariff policy, stating that while China is eager to negotiate, it lacks the strategy to proceed effectively. Significant stock declines on Wednesday included companies such as Kweichow Moutai (-1.3%), Luxshare Precision (-3.1%), Goertek (-7.5%), BYD Company (-2.6%), and Contemporary Amperex (-2.7%). On the previous day, optimism returned to Chinese markets as Beijing increased its support for domestic capital markets by encouraging state-owned financial institutions to purchase more domestic stocks.