China investors expect heavy tariff, tech tensions under Trump
Onshore yuan set for steepest daily fall since June 2023
HK stocks fall more, with technology firms at the fore
HONG KONGSHANGHAI, Nov 6 Reuters China39;s yuan and stock markets fell sharply on Wednesday as the prospect of another Donald Trump presidency and Republican control of U.S. Congress risked heightened tensions over trade and technology.
By the time Chinese markets closed, Trump had claimed victory over Democrat Kamala Harris in the tight U.S. presidential race.
U.S. stock futures jumped and the dollar rose across the board after Republicans won a clear U.S. Senate majority although it won39;t be clear for some time which party will win control of the House of Representatives.
China39;s bluechip CSI300 Index fell 0.5, while Hong Kong39;s benchmark Hang Seng, which is more indicative of foreign investor sentiment, fell 2.3.
The Hang Seng China Enterprises Index fell 2.6.
Hong Konglisted China tech stocks declined broadly, with ecommerce giant JD.com and Alibaba down 4 each.
The U.S. presidential election will have a meaningful impact on China39;s economy and capital markets. As part of his pitch to boost American manufacturing, Trump had promised voters he will impose tariffs of 60 or more on goods from China.
Right now, the markets are focusing narrowly on the prospect of tariffs because it is the easiest lever to pull directly under a presidential executive order, but weve seen between…