Chinese stocks rise on US market volatility - Reuters
Photo: Chinese stocks rise amid uncertainty in the US (Getty Images)
Amid Trump’s trade war and recession fears, investors are increasingly turning to Chinese stocks as an alternative to American ones. Hong Kong’s Hang Seng index has risen 17% since the start of the year, according to Reuters.
Global investors, seeking new opportunities amid the US-China trade war, are increasingly turning to Chinese stocks as an alternative to American ones. Hong Kong’s Hang Seng index has risen 17% since Donald Trump took office in January, while the S&P 500 index has dropped by 9%.
This shift in investor sentiment comes amid economic uncertainty in the US and a move away from the There Is No Alternative (TINA) strategy.
Now, many investors are leaning toward TIARA (There Is A Real Alternative), particularly focusing on Chinese stocks. Chinese shares, especially in the tech sector, have gained popularity due to attractive pricing — down 30% compared to their 2021 peaks.
Despite risks like government crackdowns on tech companies and concerns over economic stability, optimism about the Chinese market is growing.
Investors are exploring opportunities in sectors such as technology, defense, and consumer gaming, especially after the debut of AI-focused startup DeepSeek.
Support from the Chinese government and the potential for fiscal stimulus are also fueling positive market sentiment.
China-US relations
Relations between China and the US remain a complex mix of cooperation and rivalry. The two nations are deeply economically intertwined — China remains one of the US’s largest trading partners, while American companies continue to invest heavily in the Chinese market. However, disputes over tariffs, technology restrictions, and intellectual property rights persist.
Recently, Chinese Foreign Minister Wang Yi criticized President Trump’s policies, calling them a return to the "law of the jungle."
