Stock-Market

Previously, investors focused on financial news. Since Trump’s return, they also needed to pay attention to his Twitter (a private version). The trade war continued to escalate, leading to a sharp decline on April 7th, which was quickly followed by a rebound. This time, though, are people still willing to jump in?

Background Review

On April 7, 2025, following the impact of the U.S. implementation of an “equivalency tariff” policy, global stock markets experienced a “Black Monday.” The A-share market plunged, with the Shanghai Composite Index falling by 7.34% and the Shenzhen Component Index plummeting by 12.5%, with over 4,300 stocks declining by more than 9%. The Hang Seng Index in Hong Kong also fell by 13.22%, along with European and U.S. stock indices exceeding declines of 4%. China subsequently stabilized the market through state-owned enterprise (SOE) purchases and intervention by Huishang Securities.

On the eve of the 2024 National Day holiday, China’s stock market experienced a remarkable surge, attracting considerable attention. However, following the holiday, the market unexpectedly turned to a dramatic plunge. This “polarization” of the stock market – a rollercoaster ride between soaring highs and plummeting lows – not only subjected investors to a thrilling yet nerve-wracking experience, but also prompted deep reflection within the market regarding policy, economic conditions, and fundamental market rules.