MARKET OUTLOOK - Trump's Election Could Decrease Demand for Chinese Stocks

Morningstar analysts have argued that the Trump administration could further reduce demand for Chinese stocks, and that the potential sales pressure on U.S. investors may limit the progress of any stock price. Regardless of who wins the U.S. presidential election, the direction of U.S. policy towards China is unlikely to change, which implies an increase in measures to curb China's manufacturing dominance. Furthermore, they suggested that Trump could impose additional tariffs and accelerate the delisting of more Chinese firms. Nonetheless, Morningstar continues to recommend that investors focus on Chinese companies operating domestically.