Even if China’s major stocks start occupying some of them The last great lossesSome investors and analysts are looking at the problems that may arise the worst influence than Donald Trump’s tariffs.
Since then March is highAlthough he has acquired more than 10%over the last four sessions. While China The rapid development of the II Remains the key positive, enhanced geopolitical tension at the moment.
According to Bush Chu, the head of investment in Aberdeen Investments, actions against China, such as financial holdings or further sanctions, are a “serious risk”. There was also an unverified chatter about the potential of forced maintenance of Chinese stocks from US exchanges, and some are afraid of additional restrictions on Access to technology.
Such measures can lead to a “sharp sale” of a strong foreign technology, Chu said. “I think much is not evaluated yet,” he said, also emphasizing a broader impact on demand when the tariffs weaken China’s total economy.
China’s economy can suffer widely from Trump’s aggressive hike in tariffs to 145% and interchanges of the two countries. At the same time, the high weighing sector and foreign property have extensive consequences for Chinese markets.
With American rates applied to small parcels that were Previously released from dutiesChinese e -commerce firms were most affected. US Depository Receptions Owner Temu PDD Holdings Inc. decreased by 25% since the beginning of April. ADRS with Alibaba Group Holding Ltd., the largest Chinese firm, has decreased by 21%.
The direct exposure of the tariffs is considered as small on the Internet edges, most revenues and income of China Tech and income from domestic business. But they can be deployed as well as tariff agents, as well as increased tension.
In February, Trump administration has released a political note that potentially raises doubts The Chinese List mechanism in the US, reminiscent of investors in episodes in 2021 and 2022 when The ghost of the mass listings From the American exchanges stretched to the Chinese markets.
“Given how tall Trump has already pushed the tariffs against China, we believe that the decrease is moving in the recalculation list,” the TD Cowen Jaret Seiber analyst wrote on Wednesday’s note. “This means that this week’s risk is higher than last week.”
The US Department of Defense has Already on the blacklist Tencent Holdings Ltd., the largest in China company Market Cap et al. As long as the Pentagon list There are no specific sanctions, it prevents US companies and agencies to deal with these Chinese firms.
The options market shows that investors are nervous. The cost of hedging from reducing Chinese technological giants such as Tencent and Alibaba remains about long -standing highs after the last time the Hang Seng China Enterprises.
Chinese technological stocks were furious earlier this year, since the success of Deepseek managed investors The plays of II are listed in the country. Horse -worse trading war has moved attention to US efforts to restrict Chinese access to the most advanced technology.
“Although we are not sure that the United States plans to report on new curves export restrictions, there are concerns that technology companies that have cloud services and its own AI Fund’s Opportunities may be close attention and sanction,” writes Citigroup Inc. analysts, including ALICIA. This can put pressure on Tencent, Alibaba and Baidu Inc., they added.
The sector still has an estimation appeal when the Hang Seng Tech Index is 15 times estimated, below the three-year average level of 19 times and the current NASDAQ index level is 24 times.
The great dependence of the cohort on domestic demand also puts them in order to get Beijing’s efforts to support the economy.
“Chinese technological leaders are still relatively attractive,” said Aberdin. “Does investors want to enter China’s stocks only to capture the AI capacity … They can pause a little while given great uncertainty, and they can re -enter if they get more clarity at the world economy.”
Originally this story was presented on Fortune.com
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2025-04-11 05:53:00
Charlotte Yang, Bloomberg
