Local media reports citing unnamed sources said Pelosi would go ahead with her visit to Taiwan, a self-ruled island that China sees as a runaway province.
Mainland China markets led losses in Asia on Tuesday as geopolitical tensions rose over U.S. House Speaker Nancy Pelosi’s visit to Taiwan.
The Shanghai Composite lost 2.86% and the Shenzhen Component shed 3%.
Hong Kong’s Hang Seng index fell 2.71%, with heavyweights like Alibaba and Meituan falling 2.85% and 3% respectively. The Hang Seng Tech index slipped 3.86%.
Local media reports citing unnamed sources said Pelosi would go ahead with her visit to Taiwan, a democratic self-ruled island that China sees as a runaway province.
Regarding Pelosi’s trip, Beijing warned that its army would “never sit idly by” and will “uphold China’s sovereignty and territorial integrity,” Foreign Ministry spokesperson Zhao Lijian said at a press conference on Monday.
“Pelosi’s visit will significantly raise US-China tensions but is unlikely to produce a Chinese reaction that risks conflict,” Eurasia Group analysts wrote in a Monday note.
