China Stocks Crash, Hong Kong Sees Worst Fall Since 2008 Amid Trade War Tensions

On Monday, stock markets in China and Hong Kong suffered a huge crash due to growing tensions between the US and China. Investors are worried that the trade war between the two biggest economies could lead to a global recession.

Also Read: GIFT Nifty Crashes 900 Points as Global Markets Panic Over Trade War

Hang Seng Index Falls Over 10%

Hong Kong’s main stock market index, the Hang Seng, dropped more than 10% in early trading. This is the worst drop in a single day since the 2008 global financial crisis.

Bank Stocks Hit Hard

Banking shares were among the biggest losers. HSBC and Standard Chartered, both listed in Hong Kong, lost around 15% of their value in just one day.

China ’s Markets Also Affected

China’s CSI300 index, which includes top companies, fell more than 5%. The Chinese yuan also dropped to its lowest level since January. Almost every business sector saw losses.

US-China Trade War Triggers Market Panic

The US recently increased tariffs on Chinese goods, now covering over 50% of imports. In response, China raised tariffs on American products. This growing conflict is damaging business confidence and trade worldwide.

Tech Stocks and Consumer Sectors Also Fall

Shares of big tech companies like Alibaba and Tencent dropped more than 8%. Even solar companies and home appliance brands in China saw losses of around 10%.

Investors Wait for China’s Response

With no signs of the US stepping back, investors are now watching how China plans to support its exporters and economy. Market uncertainty is high, and the Hang Seng volatility index reached its highest point since October.

Also Read: Market turned red due to US tariff, FPI withdrew 10,355 crores from equities