Handshake or arm-wrestling match? What China’s stock traders expect from Xi-Trump meeting

Hope for material results is slim, but investors remain wary of volatility as banks forecast ‘fragile detente’ will continue The coming meeting between President Xi Jinping and his US counterpart Donald Trump is on the radar of market traders in mainland China and Hong Kong, as the results – whether smiling handshakes or a tense test of wills – could add volatility to an already unpredictable market. However, observers said current expectations for substantial results from the meeting are minimal – so much so that investors have placed the event low on their hierarchy of variables likely to jolt stocks. Many stock traders are paying less attention to the sit-down scheduled for September 24 in the US than they did to Trump’s state visit to China in May, even as signs of a flare-up of tensions between the world’s two largest economies are emerging.

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