The tariff conflict between the US and China has made many investors cautious about the country's stock market, but they still think there is an opportunity. China launched a TIT-for-TAT measure on February 4th in a rapid response to new US tariffs on China's exports, robbing the fear of a trade war between the two biggest economic forces of the world I did. The additional 10% tariffs by the US on Chinese products, which were often telegraphed by President Donald Trump, are far lower than the 60% he threatened during his campaign. Beijing's response also appears modest, urging investors to focus more on the direction and intensity of further policy stimuli to help loosen the economy and support business revenue. So far, Chinese policymakers have been continuing to speculate on the size and details of the stimulus plan by investors. Still, some investors are already seeing promises in Chinese stocks. The reason for optimism, “We're adding to China” is positioned more than other emerging markets in terms of mitigating the impact of US tariffs, and ABRDN's Greater China Multi-Asset Investment Solutions The person in charge, Ruiluo, wrote in February. . Chinese stocks have added extra compared to emerging market peers, given their cheap valuations and “already light positioning” by investors, in light of uncertainty about how the economy works. I have a buffer. Meanwhile, Ivy Ng, Asia-Pacific Chief Investment Officer for Asset Manager DWS Group, said there is “at least the first sign” in the Chinese market. Tariff uncertainty, geopolitical risks and weak domestic demand are likely to keep investors cautious, but potential breakthroughs in Washington-Being relationship later this year will provide some relief It could be, NG added that the key driver of market sentiment will be rates. of changes in corporate profits. The mainland's Blue Chip CSI 300 index moved up nearly 2% last week, narrowing its losses from the start of the year to around 1%, but by early October it exceeded its 52-week high of 8%. In contrast, Hong Kong's listed stocks have started off a bright start until 2025, with the Hang Seng index increasing by more than 6%, exceeding 5% per year. -up to now. The HSCEI, which closed at 7,784 last Friday, is at the top of the expected price range, Abrdn's Luo said. “If (The) Market agrees with us and HSCEI can penetrate higher than this range, we are considering about 10%. [upside]”He added: The 2828-HK 5D Mountain Hung Seng China Enterprises Index adopted several measures last year to support the Chinese stock market. For example, central banks increase market liquidity and states Start SWAP facilities to improve support agencies, such stocks will buy more shares, more policy details and implementation will support the company's revenue and more stock profits. It is expected to promote relatively cheap, with an acquisition rate of around 10 compared to nearly 28 people on the S&P 500. 12 months will measure stock valuations. End of 2025. Company revenues are , which could adopt a 7% pickup this year, is an IT project. Bernstein has been playing the Chinese market with a “barbell approach” looking at sectors and stocks to watch with a look ahead, technology, consumption, It has discretion and higher exposure to the finance department. The Barbell strategy balances risk and compensation, including investments in both high-risk and low-risk assets. “We started the year with a tactically positive view of Chinese stocks… Unlike the first trade war, the valuation, revenue and crowding created momentum. Now, trade is has received a predicted revival and reasonable rating of both analyst/investor sentiment. “Bank analysts wrote in a note on February 4th. Stocks they are overweight includes e-commerce players JD.com and Meituan, as well as automakers Li Auto and Geely Holdings. Meanwhile, analysts at CGS International bet on “high distribution stock with the characteristics of a safe shelter.” Masu. Investment banks recommend trading around themes of scientific and technological innovation and the version of China's “Cash for Clunkers” consumption improvement program. Eugene Fuciao, head of Macquarie Capital's China Equity Strategy, remains cautious and prefers sectors that benefit from Beijing's stimulus support, while being insulated from trade concerns in electronics, white goods and automobiles. Other stable sectors such as banks and utilities can provide shelter to investors, except for the energy sector, which faces geopolitical risks and oversupply concerns, Hsiao added.
