Chinese Stocks Take Massive Hit as Trade War Intensifies
Chinese stocks took a massive hit on Monday after the United States and China exchanged yet another series of bickerings on trade, initiated by the U.S. President Donald Trump’s threat to impose 10 percent tariffs on an additional $300 billion of Chinese imports.
Just one Chinese company recorded in the top 50 for daily volume reported percentage increase intraday on Monday. The Hangzhou-based logistics provider, Best Inc. (NYSE: BEST), inched up just below 1 percent to $4.78 per share.
Meanwhile, EV company Nio Inc. (NYSE: NIO) was trading down 9 percent, at $2.98 per share. E-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) was down 4 percent, trading at $154.83 per share, with rival JD.com Inc. (Nasdaq: JD) down 6 percent, at $26.38 per share.
Sohu.com Ltd. (Nasdaq: SOHU), an online media platform that provides game services on computers and mobile devices, took the deepest plunge, trading 24 percent down, at $9.29 per share by midday. The Beijing-based company posted weaker-than-expected results for the second quarter today.
Separately, China’s yuan dropped below $7 for the first time since 2008 in what President Trump called “currency manipulation."
“China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation,” the President Tweeted. “Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!”
The 10 percent tariff increase on Chinese goods is expected to go into effect on Sep. 1, as Trump announced last week after another round of negotiations with China.