China Stocks Rise Amidst Trump's Tariff Threats

China's stock market made gains, and Hong Kong shares recovered from recent lows as President-elect Donald Trump's tariff threats against China spurred hopes for stronger economic stimulus from Beijing. Despite anticipations of a trade war, Chinese market participants remained optimistic, expecting protective measures.

On Tuesday, China's stock market showed marginal gains as Hong Kong shares rebounded from their earlier two-month lows. This movement comes amidst recent tariff threats against China by the U.S. President-elect Donald Trump. Speculations prompted expectations for a stronger policy response from Beijing, bolstering investor confidence.

Trump's announcement of a 25% tariff on all products from Mexico and Canada, alongside an additional 10% on Chinese goods, seemed mild to Chinese investors, who remained unfazed about the threats. Previous statements suggesting even higher tariffs had prepared Chinese markets to anticipate stronger reactions.

Market professionals suggest that China's preparedness, derived from experiences during Trump's first term, may drive an increase in economic self-reliance and import substitution strategies. Meanwhile, gains in property and consumer-related shares reflect a strategic shift, as investors reconsider long-term funds impacted by the possible tariff implementations.

(With inputs from agencies.)