Stock prices for both Hikvision and Dahua soared by 10% today (maximum allowed in Chinese markets) after news broke that President Trump has ordered his administration to begin drafting a trade deal with China following a friendly phone call with Chinese leader Xi Jinping. The big price gains occurred across China's tech industry, with one publication even writing that "Chinese tech stocks are going bananas" on hopes that the US-China trade war will end. Recall that the US has already imposed 10% tariffs on many Chinese goods, including select video surveillance products, as part of the trade war; those tariffs are set to increase to 25% in January if there is no resolution to the dispute, something Hikvision has said will "definitely affect" its bottom line.
Hikvision And Dahua Stock Soar As Possible US Trade Deal Emerges
Charles, thanks.
Here is Hikvision's stock chart over the past 6 months, with the fall over most of that time and the spike up over the past week and today:
wouldnt it be a doozy if the proposed 25% tariffs do not actually come through afterall in January? Can you imagine the volume of orders China received recently to try to get ahead of the 25%? Who really won if this scenario played out?
What if Hikua haters worse nightmare came true and.... I cant even say it. Too much for Hikua haters to handle.
What if Hikua haters worse nightmare came true and.... I cant even say it. Too much for Hikua haters to handle.
They've still got the stink of No Government Use on them, that is going to be harder to wash off.
That was my what if scenario. oh no, that stink will be washed away in no time and will come out smellin like a rose.
Can you imagine the volume of orders China received recently to try to get ahead of the 25%?
Can you?
From the Axios / Sinocism newsletter:
Between the lines: It sounds like the two sides are still far apart on a deal.
If there is a positive outcome from the meeting, it is likely to be a framework deal that involves a tariff cease fire and a roadmap for talks. That seems to be what the Chinese side sees as the most realistic positive outcome.
Even if we see a trade deal, expect it to be a short-term, superficial salve to the fundamentally deteriorating U.S.-China relationship, and that Xi et al will see it and leverage it as a delaying action while China ramps up its efforts to reduce reliance on the U.S. and build up its comprehensive national power to better compete with the U.S.
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