On April 7th, the A-share market in China suffered a steep decline, with the Shanghai Composite Index falling by 6.3% and the Shenzhen Component Index dropping by 8% within just half a day.
The Shanghai Composite Index opened lower on the 7th and once dipped below the 3100-point mark, reaching a maximum decline of 246 points or 7.37%, hitting a low of 3095 points. By midday, the index closed at 3130 points, down by 211 points or 6.34%, with a total turnover of 487.186 billion yuan (RMB).
The Shenzhen Component Index opened with a decrease of 618 points, falling below the 10,000-point mark. The decline worsened in the morning session, with a maximum drop of 952 points or 9.19%, hitting a low of 9412 points. At the midday break, the index stood at 9535 points, down by 830 points or 8.01%, with a turnover of 584.087 billion yuan.
The CSI 300 Index closed at 3617 points, down by 243 points or 6.31%, while the ChiNext Index closed at 1864 points, a decrease of 201 points or 9.74%.
On the 7th, the A-share market in China showed a trend of opening low and going lower. The Shanghai Composite Index opened at 3193.10 points, dropping by 4.46%; the Shenzhen Component Index opened at 9747.66 points, a decrease of 5.96%; the ChiNext Index opened at 1925.64 points, down by 6.77%; and the CSI 300 opened at 3675.20 points, falling by 4.82%.
All sectors of A-shares experienced declines, with electronic information, oil, and machinery stocks falling by over 10%; auto manufacturing stocks dropping by 9%; chemical industry, media and entertainment stocks down by over 8%; non-ferrous metals, real estate, finance, coal, and steel stocks dropping by over 7%; cement fell by more than 6%; biopharmaceuticals and power stocks down by over 5%.
On April 2nd, US President Trump announced the implementation of equivalent tariff measures on all trade partners, including a 34% tariff on Chinese goods. Added together, the total tariff on Chinese goods reached 54%, with an average weighted tariff as high as 66%, reaching a historical high.
On the other hand, the Chinese government announced on the 4th a 34% tariff on all US imports. The market is concerned that this may lead to further retaliation between China and the US, causing repercussions such as supply chain shifts and foreign capital withdrawals. Some economists believe that if China fails to repair its economic and trade relations with the US, the Chinese economy may fall into a long-term slump.