US President Donald Trump, who is due to meet Chinese President on the sidelines of a G20 summit this week, exerts tariffs pressure on China again ahead of the high-stakes meeting. He said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent. If negotiations were unsuccessful, he would also put the $267 billion addition on, at a tariff rate of either 10 percent or 25 percent. Although the speech had little to none impact on the market, the market has already partially reflected positive result. If negotiations were unsuccessful, market may enter another correction phase. China will likely to be patiently waiting for any opportunity arise amid the new congress and Trump-Russia investigation. However, if negotiations were successful, companies with good financial result would gain drivers for a rerate.
HK Economic Journal
HK Economic Times