Interest rate hikes, trade frictions cause obvious stock declines in China

Chinese Vice Premier Liu He said Friday many factors have caused obvious stock fluctuations and declines in China recently, including interest rate hikes by major economies' central banks and the Sino-U.S. economic and trade frictions.

Liu He, member of the Political Bureau of CPC Central Committee [Photo: AP/Markus Schreiber]

The global stock market has started to see fluctuations and downward movements after the interest rate increases, and the U.S. stock market has also seen obvious corrections, Liu, also a member of the Political Bureau of the Communist Party of China Central Committee, told Chinese reporters.

"The Sino-U.S. economic and trade frictions have also caused impact on the stock market, but the psychological effect is bigger than the actual impact, frankly speaking," said Liu.

"China and the United States are now in contact with each other," he said.