May 5 (Reuters) – Despite ongoing tensions, financial strategists maintain optimism regarding China’s economic outlook, even as meaningful progress in the U.S.-China trade war remains elusive. Experts caution that significant advancements in negotiations between the world’s two largest economies may still be distant. Signs of progress are sparse, according to Yao, who noted that China’s economic outlook remains positive. China has expressed interest in resuming trade talks with the U.S., considering Washington’s 145% tariffs. Additionally, China has proposed exemptions for certain U.S. products from retaliatory tariffs. Sat Duhra, a portfolio manager at Janus Henderson, stated that if the threat of a recession intensifies, President Trump might need to respond, which could benefit his company’s positioning in China. Duhra has been investing in Chinese stocks, particularly in sectors such as banks, technology, and sportswear, due to higher dividends and lower valuations. While Janus Henderson maintains a neutral stance on Chinese equities, Amundi prefers domestic-oriented sectors in A-shares and AI-leading tech names in offshore stocks. Yao added that tariff news has become background noise for Chinese markets, as China’s economic size and domestic policies can mitigate external shocks. — new from Reuters
