Trade War Tensions: Global Investors Turn Cautious on China's Stock Market

Amid escalating trade tensions between the U.S. and China, foreign investors are increasingly steering clear of China's stock market. Growing concerns about China's economic growth, partially driven by a prolonged property crisis and deflationary pressures, have exacerbated investor anxiety, even as analysts urge caution.

Amid brewing trade conflicts between the United States and China, global investors are choosing caution, with many veering away from China's stock market.

The imposition of U.S. tariffs and China's retaliatory measures have heightened unease among investors about China's economic prospects, already fraught with deflationary pressures and uncertainties.

Foreign investors have pulled out nearly $12 billion from China-focused funds recently, indicating a wait-and-see approach as analysts recommend rotating investments into safer options, such as bonds, amid the trade tensions.

(With inputs from agencies.)