Trump’s Trade Moves Shake U.S. Markets, Boost Chinese Stocks – Reuters Reports
According to Reuters, investors worldwide are reacting to U.S. President Donald Trump’s unpredictable trade policies, shifting their money into Chinese stocks. While U.S. markets struggle, Hong Kong’s Hang Seng Index—home to many big Chinese companies—has surged 17% since Trump took office. Reuters highlights that this surprising trend shows investors now see China as a safer bet than the U.S.
Reuters reports that Trump’s trade war has caused fears of a recession in America, making investors rethink their strategies. Before, many believed there was “no alternative” to U.S. stocks. Now, they believe “there is a real alternative” in China, says an expert quoted by Reuters. Investors are particularly drawn to China’s technology stocks, which have jumped 29% this year, thanks to the rise of artificial intelligence companies like DeepSeek.
Reuters also notes that China’s stock market is much cheaper than America’s, making it more attractive to investors. The Hang Seng Index trades at just seven times projected earnings, compared to 20 times for the U.S. S&P 500. However, Reuters warns that China’s markets are still risky due to past government crackdowns and economic concerns.
Interestingly, Reuters points out that Trump’s tough stance on China and his tariff policies have ironically helped Chinese stocks perform better. While he claims tariffs will “make America rich,” Reuters explains that investors see more stability in China, where the government is rolling out stimulus measures to boost the economy.
As Reuters reports, some major investors have pulled all their money from U.S. stocks and are betting big on China’s rising economy. The report further states that investors are also withdrawing funds from South Korea and India to take advantage of China’s market growth.
Despite concerns about China’s corporate reporting standards and the potential for a renewed U.S.-China trade war, Reuters states that investors are still flocking to Chinese equities. A financial expert told Reuters that many investors prefer stability over sudden policy changes, which have become common in the Trump administration.
Reuters concludes that Trump’s unpredictable decisions on tariffs, government spending, and global trade have made U.S. markets uncertain. This has caused a surprising effect—Chinese stocks are now looking more attractive to investors around the world.
For more expert analysis and updates on global markets, check out the full report on Reuters.