Why Joe Biden’s surprise Ukraine visit adds to turmoil for China and Hong Kong stocks
- The war is ‘an additional headwind for stocks’, Shanghai-based Huichen Asset Management says
- The recent flare-up in the Russia-Ukraine conflict and the spy balloon incident have added to uncertainties, dampened investors’ risk appetite: China Fortune Securities analyst
The war, which started with Russia’s invasion of its neighbour on February 24 last year and roiled global financial markets at its outbreak, is showing no signs of ending any time soon.
China’s close ties with Russia, which has attracted a flurry of sanctions from the United States and European Union, have already increased the geopolitical risks Chinese stocks face. But a surprise visit to Kyiv by US President Joe Biden – who pledged “unwavering” support to Ukraine – means the war looks set to drag on.
03:29
US president Joe Biden pledges more weapons for Ukraine on surprise visit to Kyiv
“It’s an additional headwind for stocks – both from the political and economic perspectives,” said Dai Ming, a fund manager at Huichen Asset Management in Shanghai. “We hope that Russia and Ukraine can return to the negotiating table and end the war as soon as possible.”
