INSUBCONTINENT EXCLUSIVE:
economist at BNP Paribas Investment Partners, adding the uncertainty and lack of confidence could drag on for a few months.
And the war may
Trump has said he is prepared to tax the entire roughly $500 billion of Chinese products that the US imports annually
in.
UBS Securities estimates a fullblown trade war would wipe out profit growth at major China-listed companies, and the blue-chip index
could fall to 3,000 points in its worstcase scenario, which is around 7 per cent below current levels.
While most economists polled by
Reuters last month expected the trade war to also hurt the US economy, some US sectors, such as technology, are seen by investors as less
exposed than many more exportfocused Chinese companies, spurring Chinese buyers to shift funds into US stocks.
