As tensions between the Chinese mainland and the United States continue to rise, global markets may be bracing for significant turbulence. Hong Hao, chief economist at GROW Investment Group, warns that an escalation of the China-US trade war could have severe repercussions worldwide.
In a recent interview with CGTN, Hong highlighted that intensified trade conflicts could lead to increased bond yields, higher inflationary expectations, and a decline in equity valuations. He emphasized that such developments are likely to generate \"substantial heat\" across currencies, bond markets, and global financial systems overall.
The potential ripple effects underscore the interconnected nature of today's global economy, where tensions in one region can swiftly impact markets around the world.
