HONG KONG ECONOMY TODAY, Nov 25 (Special Correspondent) As the leaders of China and the United States met, iFAST Global Markets' Investment Director Wen Gangcheng shared his views on the "Xi-Trump meeting" and the extension of the trade war truce period during the economic program "Market Open Good Morning" on Economy Today. He stated frankly that investors should not have overly high expectations regarding the actual market impact and sentiment boost from this Xi-Trump meeting.
Wen Gangcheng believes that the extension of the trade war truce by only two months is essentially a "tactical delay" adopted by the Trump camp in response to the November midterm elections. Since Trump does not have full confidence in achieving complete victory, he chooses to avoid major friction before the election, which does not indicate a substantive turning point in Sino-U.S. relations.
Regarding technological and industrial competition between China and the U.S., Wen Gangcheng analyzed that in broad terms, the United States has staked its national future on artificial intelligence, while China is actively advancing robotics and advanced manufacturing. Neither side can back down in core technological fields, making the structural competitive-cooperative relationship difficult to change.
On the financial market impact of the Xi-Trump meeting, Wen Gangcheng believes the overall effect is quite limited. He particularly pointed out that the Chinese delegation was mainly composed of diplomats, without accompanying business leaders or senior executives from large enterprises, meaning the opportunity for substantive business-level negotiations and cooperation is extremely low. For example, the market had previously hoped companies like BYD (01211) might set up factories in the U.S. or that technology firms could initiate dialogues, but with the absence of business participation, such investment expectations have faded.
Although China may make moderate concessions in areas such as agricultural product purchases to help Trump consolidate Republican votes in agricultural states, and both sides might reach limited consensus on minor issues, Wen Gangcheng believes that such "small favors" alone cannot reverse the overall trend of the Hong Kong stock market. As previous optimistic expectations failed to materialize, the Hong Kong market saw a significant pullback after the news was released.
Wen Gangcheng advises investors to maintain a neutral and cautious attitude toward the outcomes of the Xi-Trump meeting, and to avoid blindly speculating on political issues. (al)
Wen Gangcheng believes that the extension of the trade war truce by only two months is essentially a "tactical delay" adopted by the Trump camp in response to the November midterm elections. Since Trump does not have full confidence in achieving complete victory, he chooses to avoid major friction before the election, which does not indicate a substantive turning point in Sino-U.S. relations.
Regarding technological and industrial competition between China and the U.S., Wen Gangcheng analyzed that in broad terms, the United States has staked its national future on artificial intelligence, while China is actively advancing robotics and advanced manufacturing. Neither side can back down in core technological fields, making the structural competitive-cooperative relationship difficult to change.
On the financial market impact of the Xi-Trump meeting, Wen Gangcheng believes the overall effect is quite limited. He particularly pointed out that the Chinese delegation was mainly composed of diplomats, without accompanying business leaders or senior executives from large enterprises, meaning the opportunity for substantive business-level negotiations and cooperation is extremely low. For example, the market had previously hoped companies like BYD (01211) might set up factories in the U.S. or that technology firms could initiate dialogues, but with the absence of business participation, such investment expectations have faded.
Although China may make moderate concessions in areas such as agricultural product purchases to help Trump consolidate Republican votes in agricultural states, and both sides might reach limited consensus on minor issues, Wen Gangcheng believes that such "small favors" alone cannot reverse the overall trend of the Hong Kong stock market. As previous optimistic expectations failed to materialize, the Hong Kong market saw a significant pullback after the news was released.
Wen Gangcheng advises investors to maintain a neutral and cautious attitude toward the outcomes of the Xi-Trump meeting, and to avoid blindly speculating on political issues. (al)
