Feb 12 • 02:00 UTC 🇨🇳 China South China Morning Post

‘The Trump factor’: why China may benefit as investors diversify from US dollar assets

Amid global volatility, China is seen as a potential beneficiary as investors look to diversify away from US dollar assets, according to prominent investor Wong Kok Hoi.

Prominent investor Wong Kok Hoi suggests that the current global financial volatility is leading investors to reconsider traditional safe havens, which could present advantages for China. His comments are particularly focused on the implications of US President Donald Trump's policies, which aim to weaken the dollar, as well as the recent instability seen in gold, silver, and cryptocurrencies. Wong made these remarks during the launch of a new financial markets research center co-founded by his firm, APS Asset Management, and the China Europe International Business School.

Wong points to a shift in foreign investment strategies as institutions like BlackRock China and Fidelity International express optimism for China's financial markets. As investors seek alternatives to US dollar-based assets, they may turn towards opportunities within China. This diversification is seen as a response to potential inflation pressures and uncertainty in markets dominated by the American economy. Wong and others believe that these factors may create a favorable environment for China's economy and financial sectors over the next few years.

The broader implications of this trend could reshape global financial landscapes, with China potentially emerging as a more prominent player in international finance. As institutions reassess their investment strategies in light of changing market dynamics and geopolitical influences, the Chinese economy could benefit from an influx of foreign investment and greater participation in the global market, potentially impacting the dollar's dominance in the long run.

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