China investors are bracing for a grim Monday as the nation’s markets return from an extended weekend and factor in its retaliation to US tariffs.
A fall of similar magnitude in the local shares could put multiple Chinese equity gauges into a technical correction, and in some cases close to a bear market.
The quick retaliation by China, following US President Donald Trump unleashing the steepest increase in tariffs in a century last week, has raised the odds of a global recession.
The yuan will also be in focus as analysts have long been saying Beijing may weaken the currency to boost exports and blunt the impact of higher US tariffs.