Investors eye Xi-Trump summit for direction as Hong Kong, China stocks shaken by conflict
Markets await clarity on a summit, hoping it will steady Hong Kong and China equities as Middle East hostilities weigh on sentiment
The prospect of a meeting between President Xi Jinping and US counterpart Donald Trump has become a focal point for investors seeking some reassurance on growth and stability as the conflict in the Middle East dampens appetite for risk.
“Instead of choosing between investing in the US or China, more investors believe they need exposure to both,” said Fang. “The question has become one of allocation: whether to put relatively more capital into China or into the US.”
“In the past, the mindset was ‘anything but China’. Now the view is increasingly that China is simply too big to ignore,” he said. “Investors expect competition and cooperation between the two economies to coexist for a long time.”