Trade Truce Rekindles Global Investor Interest in China
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A breakthrough in China-U.S. trade talks has sparked renewed investor interest in Chinese markets.
After their officials met in Geneva, both governments released a joint statement on May 12, highlighting initial negotiation progress and signaling a pause in tariff escalations.
Global investment banks have subsequently raised their forecasts for China’s economic growth this year. UBS, Goldman Sachs, Morgan Stanley and JPMorgan Chase all released estimates that were more upbeat than their previous forecasts, which had assumed the world’s top two economies would sustain tariffs of more than 100% on each other.
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- Breakthrough in China-U.S. trade talks paused tariff escalations and boosted investor interest in Chinese markets.
- Major investment banks, including UBS and Goldman Sachs, have raised China’s 2024 growth forecasts as capital cautiously returns.
- Hong Kong’s Hang Seng Index has surged 20% year-to-date, as investors diversify amid U.S. market uncertainty, with attention on AI and domestic tech sectors in China.
- UBS
- According to the article, UBS is one of several global investment banks that have raised their forecasts for China’s economic growth this year. This change comes after a breakthrough in China-U.S. trade talks, which has led to renewed investor interest and optimism in Chinese markets.
- Goldman Sachs
- Goldman Sachs is one of several global investment banks that have raised their forecasts for China’s economic growth this year. Their updated outlook comes after progress in China-U.S. trade negotiations and a pause in tariff escalations, which has renewed investor interest in Chinese markets.
- Morgan Stanley
- According to the article, Morgan Stanley reported that global passive funds which had exited China after April’s tariff announcements have now returned, and outflows from active investors have slowed notably. This suggests that some institutional investors are cautiously reassessing China amid the recent pause in tariff escalations.
- JPMorgan Chase
- According to the article, JPMorgan Chase is among the global investment banks that have raised their forecasts for China’s economic growth this year. This adjustment follows progress in China-U.S. trade talks, with previous forecasts having assumed ongoing high tariffs between the two countries.
- Janus Henderson Investors
- Janus Henderson Investors is a global asset management firm. Its CEO, Ali Dibadj, commented that if confidence in "U.S. exceptionalism" collapses, up to 10% of their clients’ exposure could be reallocated from U.S. assets to regions such as Europe, China, the Middle East, and Latin America.
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