28-11-2018

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.

Reference:
Bloomberg
HK Economic Journal
HK Economic Times

General Disclosure and Disclaimer:
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.