China stocks fall after Trump's win as tariff promises loom

Published On Nov 6, 2024, 10:53 AM

After Donald Trump's victory in the U.S. elections, Chinese stocks traded in the U.S. fell sharply due to concerns over potential new tariffs on Chinese imports. Trump had campaigned on implementing significant tariffs, including a possibility of 60% on goods from China, which could raise living costs in the U.S. and lead to retaliatory measures from China. Major companies like Alibaba, JD.com, and Bilibili saw declines of 4.5% to 7.8%. The broader Hang Seng Index in Hong Kong dropped 2.2%. Analysts warn this could negatively impact both China's economy and U.S. businesses due to retaliatory actions and increased inflation.

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Stock Forecasts

BABAView BABA chart on TradingView

Negative

The prospect of renewed tariffs is likely to weigh heavily on Chinese stocks, especially those that heavily rely on U.S. markets. Additionally, the increase in tariffs can spur inflation and slow economic growth, affecting consumer spending. This may prompt an exodus from investments in Chinese stocks as investors become reluctant to absorb direct impacts from increased costs.

JDView JD chart on TradingView

Negative

Given the heightened uncertainties regarding future trade policies and tariffs after Trump’s victory, JD.com is also likely to feel the pressure as it primarily serves U.S. consumers with its expansive offerings. Any anticipated decrease in consumer demand due to rising costs could adversely affect its stock performance.

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