Furthermore, many industries that are affected by the tariffs may be state-owned enterprises or even private companies, so many listed companies may not feel a direct effect.

Consequently, Bush believed that the investor sell-off could be attributed more to pricing in an escalation or a prolonged trade war.

Meanwhile, China, especially mainland Chinese A-shares, remains a relatively underrepresented asset in many U.S. investors’ portfolios. Looking ahead, more investors and money managers may begin to shift into Chinese A-shares as major index providers, more notably MSCI, adopting China A-shares into its benchmark emerging market index and international indices.

For more information on the Chinese markets, visit our China category.