A Trump win will fuel a long-term buying opportunity in the Chinese market, stock chief says

• A Trump predetermination triumph will spur a Chinese banal sell-off that will past connection a buying opportunity, an equity strategist said.
• Trump's way grounds shows he is not arsenic anti-China arsenic feared, Christopher Wood of Jefferies said.
• The erstwhile president's tariff plans are apt a bargaining spot to discuss pinch China, he said.

A statesmanlike triumph for Donald Trump will trigger a sell-off successful Chinese stocks that would past create a buy-the-dip opportunity, Christopher Wood of Jefferies said.

In a Bloomberg TV interview, nan world caput of equity strategy said investors are excessively concerned by nan Republican candidate's large guidance to Beijing. He's acold little pessimistic.

While Trump has asserted that he will levy a 60% tariff complaint connected each Chinese imports to nan US nether his management — portion of a broader promise to enforce cosmopolitan duties connected each overseas products — Wood says it's mostly bluster.

He says critics are not paying attraction to Trump's way grounds pinch China. In his view, nan erstwhile president isn't apt to raise tariffs arsenic overmuch arsenic he touts.

"Bottom line, if Donald Trump's elected and Chinese stocks collapse, that's an opportunity to adhd to China," he outlined.

He continued: "People person forgotten that Donald Trump did nan large waste and acquisition woody pinch China successful January 2020. A waste and acquisition woody was done, and it was each hunky dory, and Donald Trump was going to tally connected that statesmanlike run arsenic I'm nan feline who's negotiated nan champion waste and acquisition woody pinch China since WTO."

The statement efficaciously capped further escalation to nan 2018 waste and acquisition war betwixt nan US and China, requiring that Beijing bargain an further $200 cardinal of US exports.

But that past precedent besides shows that Trump is consenting to discuss pinch Beijing. For instance, he suggested that China would judge higher duties if Trump could relax restrictions connected precocious US semiconductor technology. Chip export controls person accrued connected chips successful caller years amid a rising interest for nationalist security.

"[Trump's] not 1 of these nationalist information guys successful Washington who judge China is simply a threat to US hegemony," Wood said. "In fact, he's nan opposite"

Trump would apt position accrued semiconductor waste and acquisition arsenic benefitting US business, arsenic a cut-off Chinese marketplace has already proven a challenge for immoderate starring chipmakers, specified arsenic Nvidia.