A shares down on trade row

Analysts predict limited long-term effects as growth remains stable, say investors overreacting

Chinese stocks plunged on Tuesday on fears related to the rapidly escalating trade tensions between Washington and Beijing, but economists said investors were overreacting as the impact of the trade war will likely be limited and China will maintain steady and healthy economic growth.

The benchmark Shanghai Composite Index ended down 3.78 percent, falling by 114.08 points to 2907.8. The Shenzhen Component Index tumbled 5.31 percent and the ChiNext startup index fell 5.76 percent.