The Shanghai Composite Index added 0.3% for the week, while the large-cap CSI 300 Index rose 0.9%.
Most investors have dim hopes for a breakthrough in the U.S.-China trade impasse at the G-20 meeting in Argentina, reflecting the
major differences between both sides.
On Monday, Trump said he expects to move ahead with hiking tariff levels to 25% from 10% currently on $200 billion worth of
Chinese goods, according to an interview with The Wall Street Journal. Trump also said he could still impose tariffs on the
remaining $267 billion in Chinese imports that have not yet been targeted.
Notwithstanding the low expectations for a resolution, the meeting between President Trump and his Chinese counterpart, Xi
Jinping, is seen as the best opportunity for both countries to halt an escalating trade war.
On Friday, China reported that its official Purchasing Managers’ Index (PMI), a gauge of manufacturing activity, fell more than
forecast to its slowest growth in two years.
Beneath the negative economic headlines, however, China’s economy is in better shape than it was several years ago after Beijing
pushed through tangible reforms.
This year, Beijing has stepped up targeted stimulus measures that should help put a floor under slowing domestic growth and
cushion the economy from the effects of reduced U.S. trade.
While the recent barrage of trade-related news has hurt investor sentiment, the real impact on China’s economy and companies
will be less severe than expected.
Source: G&T
