The U.S announcement of a 25 percent tariff on up to $50 billion of Chinese products intensified the US-China trade war. It prompts China’s Commerce Ministry to respond with a 25 percent tariff on $50 billion of U.S. goods. Also, Xiaomi has recently announced its decision to postpone its application to sell CDRs, leading to a strong volatility in the A-shares market. The equity market continues to be volatile amid escalating trade tensions. Any headline can potentially generate market volatility. Investor should be suggested to reduce market exposure until the market is stabilized again.