The Trump turmoil has handed China a golden opportunity

The Deepseek emergence was the last catalyst for investors who look more and more the beaten markets of Hong Kong and China as a potential source of opportunity among Trump’s irregular tariff policies.

“The United States have been historically very reliable in maintaining its commitments and obviously in the new world it is becoming more demanding,” says Brice.

“We don’t know where we will end up, but I think some hypotheses … now they are obviously in doubt. People will have to think about how to set internal politics to be more resistant to change in US politicians.”

Trump wasted no time in imposing further tariffs of 20 % on Chinese goods, but he also annoyed the allies with his samples of 25 % on imports of steel and aluminum and threats of mutual rates from April 2.

“All the speeches on rates are leading to greater uncertainty,” says Robert Secker, a portfolio specialist who covers Asian and Chinese share markets in T. Rowe Price.

“China is benefiting from a degree simply by a peak in the uncertainty that makes investors look outside the US market for the first time for a long time. It is the same case as Europe.”

Chinese President Xi Jinping ran to seize the opportunity offered by the greatest uncertainty.

Last month the founder of Alibaba Jack but, one of the most famous and rich entrepreneurs in China, appeared in a meeting Next to XI, almost five years after his criticisms of the financial sector of Beijing saw him disappear abruptly from public life.

But, which has a fortune of the value of almost $ 40 billion according to Bloomberg, he tightened his hand to XI during the meeting with the corporate leaders, where he was sitting in the front row.

“You could see that they are sending soft signals,” says Brice. “Jack but in the front row, that kind of things are important signs for them who say” we support this development “.

“From the point of view of feeling, I think it was a very strong signal.”

The Chinese leadership began to make those signals until September last year, when the Earthopper Equal Market and Hong Kong were the “most detestated” equity indices in the world.

Beijing has announced a huge package of stimuli while XI asked for the introduction of “strong” cuts at interest rate, such as the politician of 24 men in China-the highest political body of the Chinese Communist Party-he made a rare admission that his economy was facing fresh.

“The government came out with some clear statements that would support the economy, to support private companies, to support the real estate sector and only trying to start the history of consumption,” says T. Rowe’s secine.

“If you wish, there was a policy published on the basis of which the bad future economic news would have been accepted by a positive reaction of the Chinese authorities, so that type of derived from the threat” China is not investable “which had arrived the market … Really from 2021 onwards”.

Loading

What followed is a deluge of investments in China’s share markets which, at least initially, has greatly benefited from the country’s technological industry.

The wider index of Hang Seng Tech climbed over 25 % in 2025, enhanced by companies such as the Internet and the Tencent Game Giant, which on Wednesday said that profits in the fourth quarter of 2024 increased by 90 % while accelerating a push in artificial intelligence.

It is estimated that the fortune of but has grown by over $ 5.5 billion so far this year when Alibaba, its e-commerce giant, has increased by more than 50 %.

“Alibaba has done phenomenally well this year,” says Secker.

“I am in a front and central position to benefit from the AI. The stock was incredibly cheap, very little ongoing, so we had a situation in which we saw fast money return to China.

“This is truly a reflection that the market has been ignored by international investors in the last two years, so they are starting to get a little more skin in the game.”

The underlying of the Chinese markets has aroused interest from the West, which is courted by China while the US tariff policies overturn the global world order on trade.

Dozens of foreign managers were due to Beijing on Sunday and Monday for a leading development conference in which some had to meet XI.

Ola Kalnius, president of Mercedes and Laurent Freixe, CEO of Nestlé, confirmed their presence in London Telegraph. They were expected to unite with Fedex, Siemens, BMW, chip designer Qualcomm, Saudi Aramco, Citadel, Rio Tinto, Estée Lauder, Standard Chartered and Kpmg, according to Reuters.

Among the confirmed participants was also the CEO of Astrazeneca Pascal Soriot, who on Friday announced plans for the pharmaceutical giant to invest 2.5 billion dollars in a new research and development structure in the Chinese capital.

Yet the move, that Soriot said that “reflects our belief in the ecosystem of world -level life sciences in Beijing”, arrived when five of the current staff and former drug producer staff remain held by the Chinese police for accusations of violations of data privacy.

In fact, most western investors still offer “a little a raised eyebrow” to the execution of Hong Kong, according to Brice, which maintains “some fundamental concerns on how sustainable the large market rally is”.

The Chinese economy could still be affected by deflation, he says, with state figures that show this month that inflation has decreased more than expected and below zero in February, which was the first time that occurred in 13 months.

“All speeches on rates are only leading to greater uncertainty.”

Robert Secker, a portfolio specialist who covers Asian and Chinese equity markets in T Rowe Price.

The second largest economy in the world continues to fight with the consequences of the real estate crisis that led to the collapse of the Evergrande development giant. In the meantime, the markets have yet to see if Trump will follow his pre-electoral threat to put 60 % rates on China.

Last week, the U.S. Treasury Secretary Scott Beesent warned that he could block investments from the United States.

“At the moment if you want to invest in Chinese titles, you can. If you are an American investor, will he change at a certain point?” Brice said.

“I think there is a different probability from scratch there. I think he is suppressing part of the question that would have been there otherwise.”

Many investors remain engaged in China, despite the solid earnings that have pushed some profits by the investors of the Hong Kong stock market towards the end of last week.

Loading

Fidelity China Special Sitations, an investment trust listed in London focused on Asia, has reached over 25 % so far this year.

“The main uncertainties had weighed on feeling, including a weak confidence of consumers, a real estate market in difficulty and concerns for the potential US tariff increases pursuant to the new administration,” says Dale Nicholls, head of the wallet of the fund.

“Despite these challenges, I continued to meet companies in China who are innovating, investing in R&D, expanding their market share at home and abroad and eventually increasing their profits.

“Now some of the twenty economic opposites are being loosened and global investors are starting to recognize the opportunities more clearly”.

Telegraph, London

The market summary newsletter is a wrapping of the day trading. Take it each oneAndKday afternoon.