Hong Kong Says Xi-Trump Talks Could Calm Nervous Markets

Hong Kong's financial chief, Paul Chan Mo-po, went on the radio Saturday and made a simple prediction: markets will likely react well to the recent summit between Chinese President Xi Jinping and US President Donald Trump. Xi had just finished a three-day trip to Washington, and while the two sides promised to keep talking, they did not announce many concrete deals. Chan's point wasn't about what was signed — it was about the mood.

Here's why that mood matters. For years, tensions between the US and China have made investors uneasy. When countries argue over trade, technology, and security, businesses don't know what rules they'll be playing by next year. That uncertainty makes money jumpy — it moves quickly between countries and investments, which can shake up stock markets, currencies, and even the cost of borrowing for regular people.

Chan argued that if that friction cools down, investors will feel more comfortable deciding where to put their savings. In his words, people would "feel more secure when positioning their portfolios." That's finance-speak for: they'll stop panicking and start investing again. When investors feel calm, companies find it easier to raise money, expand, and hire — which eventually reaches ordinary workers and shoppers.

But there's a catch worth remembering. The summit produced promises of more talks, not firm agreements. Markets often react to hope first and details later. If the follow-up conversations stall or tensions flare again, that positive mood could fade fast. So Chan's prediction is really a bet — that the worst of the US-China chill is behind us, and that businesses and families can plan with a little less fear.