Investors eye Xi-Trump summit for direction as Hong Kong, China stocks shaken by conflict

The prospect of a meeting between President Xi Jinping and US counterpart Donald Trump has become a focal point for investors seeking some reassurance on growth and stability as the conflict in the Middle East dampens appetite for risk.Investors are awaiting clarity on the summit, viewing it as a potential sign of cooperation that could steady mainland China and Hong Kong equities. The meeting had been scheduled for the end of the month, but the White House said it would be postponed by five or six weeks because of the US and Israel war on Iran. Beijing has yet to confirm the date.Thomas Fang, head of China global markets at UBS Group, said the meeting would focus on stability and growth, which were critical for both nations amid rising geopolitical uncertainty. He said the China-US relationship had become less of a concern among global investors after the two sides came to terms on tariff issues.“Instead of choosing between investing in the US or China, more investors believe they need exposure to both,” said Fang. “The question has become one of allocation: whether to put relatively more capital into China or into the US.”The meeting could reinforce the view among US investors that Chinese equities were an important part of global portfolios, Fang said.“In the past, the mindset was ‘anything but China’. Now the view is increasingly that China is simply too big to ignore,” he said. “Investors expect competition and cooperation between the two economies to coexist for a long time.”