The Impact of Sino-US Trade War on The Stock Markets of The Two Countries

Abstract

This paper analyzes the parallels and variances between the stock markets of the US and China, and the impacts of Sino US Trade War on stock markets in the same countries. The findings are showing that the US and China exchange stock markets are divided into different stock markets and play a critical role in each country’s economy. The stock markets have some differences in the level of development of the accessibility to funds, with the US stock economy being more developed and more integrated into the economy than China's economy. The findings show the Sino-US trade war has been affecting China and the US stock markets negatively. The adverse effects reflect in stock market fluctuations, decline in market capitalization, market equity loss, reduction in prices, and the returns from the stock markets. These adverse effects imply that the Sino-US trade war created more negative impacts than the intended implementation goal.