On Friday, the stocks of China slumped down just before a crucial week considering the future of the on-going trade war between the United States and China.
The Shanghai Composite which is the benchmark of the share index of China decreased by 2.5 percent taking into consideration its value for the day.
This was because of the jitters of the investors regarding the trade war before the G20 meeting which is scheduled for the next week and has to be held at Buenos Aires of Argentina.
The president of the United States, Donald Trump, and Xi Jinping, the president of China will be holding a bilateral meeting during the summit in order to discuss the trade scenario and the future between Washington and Beijing.
Investors have raised concerns with a belief that the meeting between the presidents of the two countries will bear futile results.
They also feel that after the meeting there would be a continued imposition of the tariffs of worth more than $300 billion on the flow of goods between the two countries.
The investment director at the AJ Bell, Russ Mould, stated in a note that the contraction of the market on Friday demonstrates the nervousness of the investors that Trump and Xi would fail to reach to an amicable agreement.
Despite the fall of the Shanghai Composite, this was not the worst performing day of China.
The Shenzhen market decreased by 2.5 percent whereas the China A50 was down by 1.5 percent.
The decline in the market on Friday adds to a horrendous year for the equity investors of China. The stocks of China have decreased the most considering the entire economy for the year 2018.
The trade war has been affecting the economy of both the countries along with the entire world and has serious ramifications.
Source: BusinessInsider, Metalsnews
