Investors inured to years of Sino-American trade spat seem willing to brave the risk of even higher tariffs following the U.S. presidential election, and are favoring Chinese assets on bets for more stimulus.
Whether it be Donald Trump or Kamala Harris as the new U.S. leader, global money managers expect escalated hostility toward China. But rather than shun Chinese assets altogether on that prospect, they are banking that Beijing’s policies will continue to support stocks, especially those listed on the mainland.
A dovish central bank is also seen as a boon for local government bonds. The mood though is less sanguine when it comes to the yuan, as monetary easing to offset any post-election headwinds has the potential to weaken the Chinese currency.
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