China stocks fall as investors brace for Trump presidency

file

China and Hong Kong stocks started lower on Thursday as investors priced in heightened tensions around security and trade in a second Donald Trump presidency, with losses contained by expectations from a key Chinese leadership meeting. 

China's blue-chip CSI300 Index opened down 0.9 per cent, while the Shanghai Composite Index lost 0.7 per cent. Hong Kong benchmark Hang Seng .HSI was down 0.7 per cent.

The drop was led by exporters. Stocks are expected to extend their decline in the days ahead as markets await US Congressional election results and brace for a Republican sweep which could give Trump greater sway over taxes and tariffs.

Hong Kong's Hang Seng, which is more indicative of foreign investor sentiment, fell 2.3 per cent on Wednesday. The Hang Seng China Enterprises Index opened 0.3 per cent weaker after it fell 2.6 per cent on Wednesday.

A threat by Trump, who has been elected as the next US president, to impose 60 per cent tariffs on US imports of Chinese goods, poses major growth risks for the world's second-largest economy.

Meanwhile, investors' attention shifted to the National People's Congress Standing Committee meeting which concludes on Friday. Any stimulus surprise from the meeting will likely help lift market sentiment in China stocks.

More from Business

  • Mubadala, France's Safran to drive aerospace growth in UAE

    Mubadala Investment Company and Safran, a French multinational aerospace and defence corporation, have joined forces to accelerate aerospace innovation and development within the UAE.

  • Indian billionaire Adani charged in US with bribery

    Gautam Adani, the billionaire chairperson of Indian conglomerate Adani Group and one of the world's richest people, has been indicted in New York over his role in a $265 million bribery scheme, according to US prosecutors.

  • Bitcoin hits record high

    Bitcoin reached a historic high of over $97,000 on Thursday, driven by expectations that US President-elect Donald Trump will introduce pro-cryptocurrency measures.

  • Dubai International Chamber marks 117% increase in MNCs

    Dubai International Chamber attracted 157 companies in the first nine months of the year, marking a 68.8 per cent increase compared to the same period last year, including a 117 per cent increase in multinational companies (MNCs) YoY. 

  • Air Expo Abu Dhabi 2024 gathers industry leaders

    The Minister of Tolerance and Coexistence, H.E. Sheikh Nahyan bin Mubarak Al Nahyan, inaugurated Air Expo Abu Dhabi 2024 on Tuesday as top industry CEOs and distinguished guests gathered for the event.