China's currency fell the most in 24 months, and its financial markets dropped sharply after former United States President Donald Trump defeated Vice President Kamala Harris in Tuesday’s contest for the White House.
Concerns about escalating tensions over trade and technology access led to a 0.5 percent decrease in China's benchmark CSI 300 Index, while Hong Kong's Hang Seng Index closed the day down 2.6 percent.
The offshore yuan declined as much as 1.3 percent against the U.S. dollar in response to the election outcome, marking its biggest one-day depreciation since October 2022.
The investor fear was primarily driven by campaign threats from the President-Elect to expedite supply chain decoupling, impose tariffs up to 60 percent on Chinese goods, restrict sensitive technological transfers to the communist country, and revoke Beijing’s most-favored-nation trading status. These proposed measures could severely impact the country's $400 billion annual export activity with the U.S.
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