The solid trade balance that the Chinese Government has published in recent hours (thanks in part to the good export data published) and the hopes of the materialization of new stimuli for the country’s economy that help overcome the bump that is going through – above all – its real estate sector, has favored the rebound of the stock markets in the eastern country.
The Hang Seng of Hong Kong and the Shanghai Shenzhen CSI 300 recorded advances this Thursday that exceeded 2 and 3% respectively and defused concerns about tariffs fueled by the outcome of the US election.
The market has relativized Donald Trump’s victory in the elections, and now values that China has taken strategic steps to ensure its greater resilience and better position to fight back. since the American magnate held the position of top president of the United States in 2018.
Key to that has been expanding its toolkit, 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 U.S. companies.
“This is not the first time that US tariffs have been a potential problem and, this time, Chinese companies are more prepared”explains Sandy Pei, from Federated Hermes, who explains that the country’s firms have diversified their production base, establishing plants in Southeast Asia, Mexico and Eastern Europe and that Chinese exports have continued to grow despite the fact that the US has decelerated.
“We see a significant negative impact on the Chinese economy,” Julius Baër warns, but they qualify their opinion by explaining that “will likely be partially offset by additional fiscal support to the domestic economy.”
Something with which sounds the market becoming increasingly optimistic that authorities will announce stronger stimulus measures after a key legislative meeting concludes on Friday.
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