US president Donald Trump fired another salvo in the trade war on the story three major Chinese banks participated in breaking the sanctions on North-Korea. A part of Trump’s political game, says Shanghai-based business analyst Shaun Rein in the South China Morning Post.
The South China Morning Post:
Analysts said the timing of the report was sensitive. Shaun Rein, managing director of China Market Research Group in Shanghai, said it could be another “pressure tactic” following the export restrictions on Huawei Technologies by US President Donald Trump, given he is going to meet his Chinese counterpart, Xi Jinping, this week in Osaka during the G20 summit.
“I view it as likely to be a politically motivated attack by Trump administration officials looking for excuses to contain and curb China’s growth … It is doubtful that a large bank such as China Merchants Bank would break sanctions, as it has too much to lose,” he said.
China Merchants Bank dropped by more than 8.2 per cent on Tuesday in Shanghai, but recovered after the bank’s statement to close at 36.1 yuan, 4.8 per cent lower. Its H shares dropped by 7.9 per cent to close at HK$38.4 in Hong Kong. Bocom fell by 3 per cent to close at 6.1 yuan in Shanghai. Its H shares eased 3.7 per cent to close at HK$5.95. SPDB fell 3.1 per cent to close at 11.7 yuan in Shanghai.
Are you interested in more experts on the ongoing trade war between China and the US? Do check out this list.