What are the mistakes investors need to avoid in US-China trade war

Taiwan, Malaysia, Hong Kong and South Korea stand out with the largest exposure to a drop in China's exports to the US

Investors may be mispricing the trade war by dumping Chinese shares more aggressively than those in Taiwan, Malaysia and South Korea, according to Bloomberg Economics’ Fielding Chen and Tom Orlik.
 

China’s benchmark Shanghai Composite Index slumped 3.8 per cent Tuesday, the biggest decline in Asia, even though many of its neighbours are more exposed to trade skirmishes, the economists wrote in a June 20 note. The index was down a further 1 per cent Wednesday.

“The pattern of declines did not reflect the