Standard Chartered plays down fears of US-China trade war under Trump

Standard Chartered bank executives have dismissed concerns over a potential trade war with China under a second Trump presidency, asserting that the country’s real estate issues are largely behind it. Chief Executive Bill Winters emphasized that the bank, which generates significant revenue from Asia, particularly Hong Kong and Singapore, is not overly worried about the impact of strained U.S.-China relations on its operations. He noted that the Biden administration has already adopted a tough stance on China, implementing trade restrictions that have not improved bilateral relations. Winters highlighted that any pressure to open China’s economy could benefit cross-border lenders like Standard Chartered. While acknowledging that geopolitical tensions can negatively affect global sentiment and business confidence, he remained optimistic about the bank's performance. The bank recently reported pre-tax profits of $1.6 billion for the second quarter, surpassing analyst expectations, driven by growth in its wealth management division. Despite a reported 4.7% growth in China's economy for the second quarter, which fell short of the anticipated 5.1%, Standard Chartered cautioned that the growth rate may not return to pre-pandemic levels. Winters pointed out that Chinese policymakers are carefully managing the economy, particularly in light of the recent real estate crisis involving developer Evergrande. Chief Financial Officer Diego De Giorgi remarked that while it is premature to declare a bottom in the real estate market, the financial repercussions have largely been addressed. Both executives expressed confidence in China's continued strong growth, which remains a significant contributor to global economic expansion.