Updated from 9:53 a.m. with comments from Wilbur Ross
Donald Trump's team of top economic minds, like Wilbur Ross and Anthony Scaramucci, may be saying they don't want a trade war with China but the market isn't buying the lip service.
The Shanghai Composite Index has dived about 5.1% to 3,113 since hitting a peak on Nov. 29, as investors grew fearful of the stance of the incoming Trump administration when it comes to trade with the key manufacturing country. During this span, the Shanghai Composite Index has underperformed the rallying S&P 500. The underperformance of Chinese stocks is especially concerning in light of the government's recent liquidity injections and otherwise decent economic trends.
The People's Bank of China pumped in about 410 billion yuan ($60 billion) through open-market operations on Wednesday. It marked the biggest daily injection since 2004, according to Bloomberg data. Over the past week, China has put in about 845 billion yuan ($123 billion) in an effort to stem potential capital outflows. Meanwhile, China's fourth-quarter GDP is seen rising 6.7% when results are issued this Friday. Although that annual pace would be the slowest since 1990, it still would mark the fourth straight quarter of 6.7% growth and be among the fastest in the world.
There goes China's stock market ...
Nevertheless, China's stock market appears to be taking its cue right now from President Xi, who has dropped tough talk lately on relations with the U.S. under President Trump.