The strong trade balance that the Chinese government has published in recent hours (partly thanks to the good export data published) and hopes for the materialization of new incentives for the country’s economy which help to overcome the bump which crosses – above all – its real estate sector, has favored the rebound of the stock markets of the Eastern country.
The Hong Kong Hang Seng and the Shanghai Shenzhen CSI 300 recorded gains of more than 2 and 3% respectively this Thursday. and eased concerns about tariffs fueled by the U.S. election outcome.
The market has put Donald Trump’s victory in the elections into perspective and is now valuing it. China has taken strategic steps to ensure greater resilience and a better position to fight back. since the American tycoon served as the first president of the United States in 2018.
Key to this has been the expansion of its toolbox, which now includes export controls on critical raw materials, as well as tariffs on agricultural products and a list of entities that can target key American companies.
“This is not the first time that US tariffs have been a potential problem, and this time Chinese companies are better prepared”” says Sandy Pei of Federated Hermes, who explains that the country’s companies have diversified their production base, establishing factories in Southeast Asia, Mexico and Eastern Europe and that Chinese exports have continued to grow despite the slowdown in the United States.
“We see a significant negative impact on the Chinese economy,” warns Julius Baër, but he qualifies his opinion by explaining that “will likely be partially offset by additional fiscal support to the domestic economy.”
Something with which sounds The market is growing increasingly optimistic that authorities will announce stronger stimulus measures after the conclusion of a key legislative meeting on Friday.
