Former President Donald Trump said that his victory in the Iowa Caucus has caused a significant downturn in China’s stock markets. Trump’s comments suggest that Beijing is apprehensive about his potential return to the White House.
What Happened: Trump, while campaigning in New Hampshire on Tuesday, attributed the recent stock market turbulence in China to his Iowa Caucus win. “I felt very badly for them. China had a crash yesterday in their stock market. You know why? Because I won Iowa,” Trump stated, as by Bloomberg.
Trump went on to suggest that this market reaction reflects Beijing’s concerns about his potential approach to U.S.-China relations. Despite this, he emphasized his positive relationship with Chinese President Xi Jinping.
The Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the U.S., experienced a 3.8% drop following Trump’s Iowa victory. Analysts, however, are skeptical about Trump’s claim, attributing the market downturn to China’s internal issues.
Willer Chen, an analyst at Forsyth Barr Asia Ltd. “Personally, I don’t think the drop is related to that. It’s more about China market’s own problem, I would say. But Trump for sure would love to link that to his victory.”