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The US government has announced that it is preparing new tariffs Chinese products, releasing a list including fruits and vegetables, handbags and baseball gloves
The Shanghai Composite fell 1.9% and Hong's Hang Seng Kong 1.4% Wednesday, China's currency, the yuan, fell 0.5% against the dollar
Other markets were also down: the Japanese Nikkei slipped about 1% and the Dow dropped 0.7%.
The Chinese stock market is one of the worst performing in the world in 2018, weighed down by fears of a slowdown in the economy. omitted from the country and the trade conflict with the United States. The Shanghai index entered a bear market at the end of last month, which means that it has fallen more than 20% from its recent peak.
Related: The United States prepares new tariffs on 200 billion dollars of Chinese products
Among Chinese stocks caught between two fires on Wednesday, there are companies strongly related to the US market. Shares in the major appliance manufacturer Qingdao Haier fell more than 3%. The new US list targets products, including refrigerators and air conditioners.
The announcement of the United States comes just days after the United States and China imposed tariffs of 25% on $ 34 billion of their respective exports.
Jingyi Pan, a Singapore-based market strategist at IG Group, said investors were now preparing for retaliation from Beijing in the form of more tariffs and "other creative methods" to show his dissatisfaction. This could include making life difficult for US companies operating in the world's second largest economy.
Related: China: The United States triggered the biggest trade war in history
China said last month that if the United States led the threat new tariffs, Backtracking, and launch comprehensive measurements that match the quantity and quality of the United States. "
Gao Qi, a Singapore-based foreign exchange strategist at Scotiabank, said the lack of planned trade negotiations to defuse tensions between the two governments was heightening investor anxiety.
The Trump administration is expected to impose tariffs on $ 16 billion worth of Chinese products this summer, which could put more pressure on the yuan, Qi said.
The Chinese currency fell sharply against the dollar last month as fears over the trade war intensified.China's central bank expressed last week, saying it "paid close attention" to recent currency market swings and that It would seek to maintain the stability of the yuan at a reasonable level.
Qi said that he was advising his customers to sell the yuan and buy the Japanese yen, a devi is often considered a safer asset in times of market turmoil.
CNNMoney (Hong Kong) First published on July 11, 2018: 12:40 ET
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