China's stock markets began 2025 with a steep decline, marking the worst first day of trading since 2016. Following the reopening of markets on January 2, Chinese stocks, bonds, and currency have all experienced significant drops. In response to the turmoil, China's main stock exchanges have asked large mutual funds to restrict stock selling, as authorities aim to stabilize the markets amid growing investor concerns. President Xi Jinping has expressed confidence in the economy's upward trajectory, yet the market's reaction has been one of skepticism, reflecting a lack of faith in the government's ability to stimulate growth. The situation is further complicated by the looming prospect of a trade war with the incoming Trump administration, raising fears about the economic outlook.