Chinese Stocks Decline Amid Tariff Threats

According to Bloomberg, President Donald Trump raised the possibility of imposing tariffs on China during his second day in office.

“We’re considering a 10% tariff on China,” Trump announced during a White House event on Tuesday, indicating February 1 as a potential start date.

During his election campaign, Trump had mentioned tariffs as high as 60%, and the prospect of transitioning from campaign rhetoric to real action is driving bearish sentiment.

According to the technical analysis of the Hang Seng Index (Hong Kong 50 on FXOpen), price fluctuations have been forming a downward trend since October. The formation of the 2025 peak (indicated with an arrow) signals bearish tendencies, as the price failed to hold above:

→ The previous high from December, near 20,210, indicating a false breakout.
→ The psychological level of 20,000.

If Trump follows through on his promises, it is reasonable to anticipate that bears may take control of lower levels in the coming sessions.

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