Protectionist Policies and Trade Tensions: Analyzing Hong Kong's Economic Climate Amid US-China Relations

Impact of Protectionist Policies on Hong Kong's Economic Landscape

Protectionist policies are increasingly shaping the future of Asia's top financial centre as tensions escalate between the US and China. Hong Kong investors, despite potential tariff hikes and trade tensions, are expressing bullish sentiments about the global economy under Donald Trump's presidency. A recent survey indicates that 70% of Hongkongers believe Trump's leadership will enhance the global economic climate.

Survey Insights and Local Reaction

Conducted by MDRi, the survey highlights a notable optimism among local investors. Approximately 58% of these investors currently allocate their funds within the Hong Kong market, while 19% opt for the US market. After the election, 24% expressed intentions to invest more in the US amid heightened optimism toward the global economy.

Market Volatility: Hang Seng Index Fluctuations

However, the sentiment in Hong Kong contrasts sharply with that in Singapore, where apprehensions about Trump's policies and their impact on US-China relations prevail. Recent volatility saw the Hang Seng Index drop by 6.3%, reflecting investor unease regarding local markets and economic policies.

Investor Sentiments: Comparing Hong Kong and Singapore

• 60% of Singaporean respondents have funds in their local market.
• 22% of Singaporean investors will shift more towards US investments post-election.
• Top concerns for investors include market volatility and changes in economic policies under Trump.