Trump's Trade Tweets Hammer China's Stocks and Currency
- Tech shares lead declines; ChiNext falls most since 2016
- State funds are said to step in to stabilize the stock market
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Chinese stocks tumbled along with the yuan as a pair of tweets by President Donald Trump undermined confidence in a trade agreement.
The ChiNext Index of technology companies and small caps dropped the most since January 2016 as trading on mainland markets resumed after last week’s holiday. The yuan also weakened the most in three years before paring its drop. People familiar with the matter said Chinese state funds stepped in as they sought to stabilize the equity market, while at least one large bank offered to sell the dollar as the yuan fell, according to traders. State-backed giant PetroChina Co. suddenly erased its decline in afternoon trading before closing lower.