What Will Happen To China Stocks In The Event Of A Trump Win And A Harris Win In Next Week's Election

Benzinga

Michele 'Mish' Schneider, Chief Strategist at MarketGauge joined Benzinga's Premarket Prep to give her take on what she thinks will happen to China stocks in the event of a Trump win and a Harris win in next week's election.

Transcript

00:00What are your thoughts here on the China trade going into the election?

00:03Well, first of all, I think, and I've read some stories that the percentage of the GDP for China

00:10based on exports to the United States is not as large as one would think. And yes, there's a lot

00:17of tariff talk, but you have to realize that China knows about this and has been preparing

00:24for this through a couple of ways. One, obviously, is through the tremendous amount of stimulus

00:29that they started out doing, they've pulled back. And I've heard, again, in Singapore,

00:34from some people that they've pulled back because they're waiting for after the election

00:38to bring out the big guns of stimulus. So China has and can afford to add a lot of liquidity

00:45to their system, number one. Number two is they're already in alliance with Russia

00:51and a few other countries through the BRICS. And I know they have to be thinking to themselves,

00:56well, gee, if we're going to be excluded from working with the United States,

01:02then what are we going to do to either A, make ourselves get back to at least closer to a 5%

01:10of the global GDP, which is what China used to be centuries ago. Now it's down in the low fours

01:16without the United States. So what does that mean? Sell dollars, sell treasuries,

01:21that's that whole BRICS thing that's going on. I'm not too worried about China. In fact,

01:27I would be more worried about emerging markets as an investment, if there's a Trump win,

01:33that I would about China. And I actually think that China might be a really good investment,

01:37regardless of who wins.

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