Trade war costs China its stock market ranking

By Trade WarFOXBusiness

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The trade war between the U.S. and China has had one major effect – losses in Chinese equities have taken their cumulative value down to $6.09 trillion,  according to data compiled by Bloomberg, below the $6.17 trillion value of Japanese equities.

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China’s stock market overtook Japan’s in 2014. The U.S. has the world’s most highly valued stock market, worth a little more than $31 trillion.

China and the U.S. have been engaged in a tit-for-tat trade war since the spring, and this is pressuring Chinese stocks as well as the country’s currency. Relatively, U.S. equities have been more resilient.

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China’s Shanghai Composite index is down over 17%, year to date, with domestic stocks taking a hit amid trade tensions with the U.S. Japan’s Nikkei 25 index is down about 1%. Stateside, the Dow Jones Industrial Average is up almost 15%.

The Chinese government stepped in to boost the economy by increasing lending after equities slipped as the trade war heated up.