Down Angle Symbol A symbol in the form of an angle pointing downwards. Donald Trump. David Becker/Getty Images
- Chinese investors are worried about November's presidential election, according to Goldman Sachs.
- Donald Trump has signaled that if he wins, he would impose tariffs of more than 60% on Chinese imports.
- According to Goldman Sachs, local investors are also worried about China's weakening economy.
According to Goldman Sachs, Chinese investors are worried not only about China's weakening economy, but also about the possible return of Donald Trump to the White House.
The bank surveyed local fund managers and found that one of their biggest concerns is the Republican front-runner, who has signaled he would escalate Washington's trade war with Beijing by imposing tariffs on Chinese goods.
“The most frequently asked questions from local investors include the impact on China if Donald Trump becomes the next US president, what would trigger more aggressive policy easing in China, and offshore investors' views on Chinese stocks after continued weak stock market performance.” , a team of analysts led by Maggie Wei said in a research note published Friday.
Goldman Sachs clients in offshore markets like Hong Kong tend to focus more on “economic fundamentals – for example, whether real estate markets have bottomed out, whether deflation will continue, and what policymakers can do to combat deflation.” they added.
Trump positioned himself as a China hawk before the November election. On Sunday, he told Fox News that he would impose tariffs of more than 60% on Chinese goods.
“No, I would say maybe there will be more,” Trump said in response to a question about a recent Washington Post report that said he plans to intensify the trade war between the two countries.
“You have to do it,” he added. “You know, of course I don’t want to harm China. I want to get along with China. I think that's great. But they really took advantage of our country.”
Trump's threat of tariffs coincides with a collapse in Chinese exports. Policymakers have also failed to stave off deflation and are struggling to contain a real estate crisis that has bankrupted indebted real estate developers such as Evergrande and Country Garden in recent years.
Beijing has also resorted to rare intervention measures to end a collapse in stock prices that has caused over $6 trillion in value loss since 2021. The flagship CSI 300 index has fallen 22% over the past 12 months, while Hong Kong's Hang Seng index has fallen 27% over the same period.
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