Investor Jitters: Trump's China Policy Shakes Markets

Hong Kong and China stocks fell after Donald Trump's choices for key positions signaled a hard stance towards China. The Hang Seng, CSI 300, and Shanghai Composite faced declines, while the yuan weakened. Key figures Marco Rubio and Mike Waltz are proposed for prominent cabinet roles.

Hong Kong and China stock markets faced a downturn on Wednesday, triggered by investors reacting to Donald Trump's recent cabinet selections. His choices strongly indicate a tough approach to China, causing the Hang Seng index to fall by 0.9%, placing it around a seven-week low.

The decline threatens to wipe out gains influenced by Beijing's stimulus measures introduced in late September. Meanwhile, China's blue-chip CSI 300 index decreased by 0.6%, and the Shanghai Composite fell by 0.4%. Furthermore, the yuan is near a three-month low.

The Golden Dragon China Index also experienced a significant drop, tumbling 4.5% to reach a seven-week low during overnight trading in New York. Notably, Marco Rubio and Mike Waltz, known for their critical stance on China, are anticipated to assume influential positions in Trump's administration.

(With inputs from agencies.)