China Markets Under Threat From Risk of Renewed US Trade War

Group 1 - The potential for a renewed trade war between Beijing and Washington poses a threat to the rally in Chinese stocks and could negatively impact the yuan [1] - President Trump announced a significant increase in tariffs on Chinese goods, including a 100% tariff effective from November 1, alongside export controls on critical software [2] - Chinese equities listed in the US experienced a decline of over 6%, marking the largest loss since trade tensions escalated in April [5] Group 2 - The Hang Seng Index has seen a substantial increase of 31% in 2025, driven by a trade truce with the US and optimism regarding China's advancements in artificial intelligence [7] - Major Chinese companies like Alibaba and Tencent have experienced significant stock price increases, with Alibaba rising over 100% and Tencent nearly 60% [7] - The overall sentiment in Chinese markets is expected to be pressured due to tariff announcements and new technology restrictions, which could affect investor confidence [6]