Global Markets Plunge into Chaos: 'Black Monday' Strikes

The declines in the global stock market are attributed to the US's newly announced "equivalent tariff" policy, which has caused widespread concern and panic among investors. The policy, announced on April 2, imposes a minimum tariff of 10% on all goods entering the US, with some countries facing even higher tax rates. This move has been met with strong opposition from the international community, with many countries announcing retaliatory measures. The international economic situation has taken a drastic turn with the implementation of this policy, sending shockwaves through the global financial markets.

The impact of the tariffs has been felt across the globe, with stock markets in Asia, Europe, and the United States experiencing significant declines. The Dow Jones Industrial Average and the S&P 500 have both fallen by over 10% in the past two trading days, while the Nasdaq Composite has plummeted by over 12%. The yuan has also weakened against the US dollar, and the price of oil has dropped to its lowest level in over a year.

In response to the market turmoil, the Chinese government has announced measures to stabilize the market, including increasing purchases of exchange-traded funds (ETFs). The Chinese stock market suffered a significant decline on April 7, with the three major indexes plummeting by over 7%. The Shanghai Composite Index fell by 7.34%, the Shenzhen Composite Index by 9.66%, and the ChiNext Index by 12.5%. The drop in the market was so severe that over 5,200 stocks declined, with more than 2,900 stocks hitting their daily limit down.

However, some analysts believe that the Chinese stock market has shown resilience compared to other global markets. China's manufacturing industry has competitive advantages, and with sufficient policy space, the economy is expected to remain stable. According to a report by CITIC Securities, China's economy is still expected to maintain stable growth despite the short-term fluctuations in the market. The report states that China's economic fundamentals remain strong, and the country's policy tools and internal driving forces will help to stabilize the market.

The report also notes that the trade war will have a negative impact on the global economy, but China's economy will be less affected due to its large market size and internal driving forces. Other experts share similar views, believing that the impact of the trade war on China's economy will be limited, and the country's internal driving forces will help to stabilize the market. Investors should remain confident in the country's economic prospects and focus on the long-term trend of the Chinese economy. The situation remains fluid, with many experts warning that the worst is yet to come, and the global economy is in for a wild ride.