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Chinese Markets Rally on Stimulus Hopes Amid Trump's Tariff Threats

China considers a $1.4 trillion stimulus plan as Trump's election victory raises concerns of renewed trade tensions.

  • Chinese stock markets climbed, with the CSI 300 Index and Hang Seng Index posting gains following Trump's election win.
  • Despite Trump's threats of imposing tariffs up to 60% on Chinese goods, markets are optimistic about a potential stimulus package.
  • China's National People's Congress is reportedly considering a $1.4 trillion debt plan to counter economic challenges.
  • Analysts suggest Beijing might devalue the yuan to boost export competitiveness, despite risks of inflation and capital outflows.
  • While China's markets show resilience, the country faces structural disadvantages in trade negotiations with the US.
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