Article by Bryan Howard
August 6, 2018
China was the 2nd largest Stock market in the world. However since President Trump has taken a hard stance with China’s trade policy they have taken on hard times economically.
According to Bloomberg the stock market value in china dropped to $6.09 Trillion from a slump on Thursday. This means Japan took over the number 2 spot with $6.31 Trillion value and USA at number one with a $31Trillion value.
The Chinese dollar has been devaluing since they have been in a feud with President Trump.
“Losing the ranking to Japan is the damage caused by the trade war,” Banny Lam, head of research at Hong Kong’s CEB International Investment Corp., told Bloomberg.
“The Japan equity gauge is relatively more stable around the current level, but China’s market cap has slumped from its peak this year.”
“The market will likely continue to hover at low levels for the next couple of months,” Linus Yip, a Hong Kong-based strategist at First Shanghai Securities Ltd., told Bloomberg.
“But there’s still a chance that China’s stock market will recover with total capitalization ascending to the world’s No. 2 place again. After all, the economic fundamentals are still stable and growth momentum will resume after a short-term downturn.”
China is a Communist nation that has been able to have a semi successful economy based off screwing the USA in trade deals, but if China is unwilling to come to the tables and play fair in the trade negotiations with the USA expect their economy to have a massive hit.