Stocks in China and Hong Kong Open Lower Amid Trump Tensions and Trade Concerns
Stocks in China and Hong Kong dropped on Thursday as investors reacted to growing concerns over security and trade under a potential second Donald Trump presidency. Losses were somewhat limited by expectations surrounding a key leadership meeting in China.
Exporters were hit hardest, with stock declines expected to continue in the coming days. Investors are awaiting the results of the US Congressional elections, with fears that a Republican sweep could give Trump more influence over taxes and tariffs.
On Wednesday, Hong Kong’s Hang Seng Index fell by 2.3%, while the Hang Seng China Enterprises Index opened 0.3% lower after losing 2.6% the day before.
Trump’s threat to impose 60% tariffs on Chinese goods has raised concerns about the growth prospects for China, the world’s second-largest economy.
Looking ahead, market attention is now on China’s National People’s Congress Standing Committee meeting, which concludes on Friday. Any surprise stimulus measures announced at the meeting could boost investor confidence and lift Chinese stocks.
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