China’s stock market has so far shown greater resilience than other emerging markets and European markets amid concerns about U.S. President-elect Donald Trump’s protectionist trade policy.

Accordingly Bloomberg According to the data, stocks in South Korea have lost up to 8% of their value since November 5, followed by Hong Kong (5.4%), France (5.1%), Switzerland (4.9%) and the UK. It decreased by 4.4% in . same period. In contrast, Mainland-listed stocks have outperformed India as well as other European markets such as France, Switzerland and Germany.

The US market, which contributes to more than half of the world stock market, gained 3.2 percent after Donald Trump was elected as the next US President. China, the world’s second largest stock market, accounts for 8.3% of the total market value, while Korea’s contribution stands at 1.3%.

But Hong Kong, which lists some of China’s most influential and innovative companies, fell 5.4% after Trump’s win. It should be noted that the Hong Kong market generally reflects investor sentiment, given the current restrictions imposed by Chinese regulators on everything from short selling to verbal warnings to direct intervention by state funds.

However, market participants say it is unlikely that the newly elected Trump administration will impose a 60 percent tariff on Chinese imports, as promised during the Presidential campaign. Jefferies’ Christopher Wood also remains skeptical on the same issue, believing that if the US did this it would increase the cost of goods for many Americans. “It will be much lower, maybe even softer, than Trump 1.0.” Christopher Wood, Head of Global Equity Strategy at Jefferies, said: According to Wood, these are part of negotiating tactics aimed at getting overseas companies to shift their production to the US.

Change in market value since November 5

Country	% To change
South Korea	-7.70%
Hong Kong	-5.39%
France	-5.13%
Switzerland	-4.88%
United Kingdom	-4.42%
India	-3.85%
Germany	-3.45%
Chinese	-3.30%
Taiwan	-3.14%
Japan	-0.26%
Canada	0.24%
United States	3.21%

Source: Bloomberg

Moreover, with Elon Musk joining the new administration, the likelihood of such a high tariff being imposed on China is very low, considering that China contributes almost a quarter of Tesla’s total revenue.

Meanwhile, the Indian stock market continued to fall for the seventh day on Monday, driven by lower-than-expected second-quarter earnings and stretched valuations. Companies witnessed a series of downgrades after the September quarter figures, resulting in lower valuation multiples.

Nifty50 is currently trading at 19.6 times its one-year forward earnings, compared to 23 times in October 2021.

Additionally, foreign portfolio investors (FPIs) sold another $3 billion worth of Indian equities in November, after selling shares worth over $10 billion in October.

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