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BBC Chinese: Asian Stock Markets Declined after China’s New Promises

BBC Chinese recently reported that the China International Import Expo (CIIE) started on November 5. In a keynote address, Chinese leadership made promises to open up the country’s domestic market and to lower tariffs. China intends to broaden its imports and strengthen the protection of intellectual property. In the next 15 years, China expects to import over US$30 trillion worth of goods and US$10 trillion worth of services. However, many experts pointed out that China’s promises lacked tangible action items and a clear timetable. The nearby Asian stock markets reflected the concerns of the analysts. Immediately after the CIIE opening keynote address, Hong Kong’s Hang Seng Index fell 2.65 percent, while both the Shanghai Composite Index and the Shenzhen Component Index fell more than 1 percent. The Tokyo stock market fell 1.3 percent, and Singapore fell 1.8 percent. Right before the CIIE, these stock markets all increased due to the fact that U.S. President Trump commented positively on an on-going dialogue with China. However, the Chinese message appeared to be disappointing.

Source: BBC Chinese, November 5, 2018